India approved a policy on August 25 to restrict wheat flour exports in hopes of calming prices in the local market, Reuters reported. Wheat exports were banned in mid-May due to a heat wave that hurt production and drove domestic prices to a record high. In July, India asked traders for permission before exporting the flour.  

The wheat export ban increased demand for Indian flour and those exports increased 200 percent from April to July compared to a year ago and increased prices in the local market, Reuters reported.

Previously, restrictions on the export of wheat and wheat flour were extended until September 30 by the Government of Kazakhstan, which also increased the export quota available under the decree, according to a June 22 Report by the U.S. Department of Agriculture's Foreign Agricultural Service (USDA).

The restrictions were originally approved on April 14 under the decree of the Ministry of Agriculture. "In respect of the export of certain goods from the territory of the Republic of Kazakhstan" and are due to expire on 15 June. The recently announced extension also added 550,000 tons of wheat to the original quota of 1 million tons and 370,000 tons of wheat flour to the original 300,000-ton quota.

In the previous two months, traders were required to sell 10% of the volume exported to the domestic market at a fixed price. The Ministry of Agriculture noted that these trade restrictions were aimed at balancing wheat and wheat flour exports with domestic food security needs.

Source: Agrolink