Exports of Wheat Flour Processed from Imported Grain Allowed against Advance Authorisation by EOUs and SEZ

· Advance Authorisation for Wheat Import subject to milling for exports will be issued

· EOUs and SEZs also Allowed import for Reexport after milling

India has allowed export-oriented units and the firms set up in Special Economic Zones to export flour made from imported wheat, a government order said on Friday, conceding to the demands of food processors to allow shipments of value-added products.

India will allow food processors to import duty-free wheat against a commitment to export flour, the order said.

After a sudden rise in temperatures in mid-March shrivelled the wheat crop, India, the world's second-biggest producer of the grain, banned overseas sales of the staple to secure supplies for its 1.4 billion people.

Wheat exports from India, also the world's second biggest consumer of the staple, surged after Russia's invasion of Ukraine hit supplies from the Black Sea region, resulting in a jump in global prices.

After banning wheat exports in May, the government of Prime Minister Narendra Modi restricted wheat flour exports in August to keep a lid on local prices.

The ban on wheat exports boosted demand for Indian wheat flour and the country's flour exports jumped 200% during April-July 2022 from a year earlier, lifting prices in the local market.

Close on the heels of the ban on overseas sales of wheat, India restricted rice exports as scant rains in the east affected planting of the most water-thirsty crop.

India's protectionist measures have stoked fears of food shortages in some of the world's most needy and vulnerable countries in Asia and Africa.

[DGFT Notification No. 39/2015-2020 dated 14 October 2022]

Effect of this Notification: The Notification No. 30/2015-20 dated 27.08.2022 is amended to the extent that Export of Wheat Flour (Atta) will be allowed against Advance Authorization, and by Export Oriented U nits (EOU s) and units in SEZs, to be produced from imported wheat and without procurement of domestic wheat and subject to conditions as specified.

Subject: Amendment in Export Policy of items under HS code 1101.

S.O. (E) In exercise of powers conferred by Section 3 read with Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992), as amended, read with Para 1.02 and 2.01 of the Foreign Trade Policy, 2015-20, the Central Government hereby amends Notification No. 30/2015-20 dated 27.08.2022, as under:

S.No.	ITC HS Code	Description	Export Policy	New Policy Condition
64	1101	Wheat or Meslin Flour (Atta), Maida, Samolina Raval Sirgi), Wholemeal atta and resultant atta	Prohibited	However, export of Wheat Flour (Atta) will be allowed against Advance Authorisation, and by Export Oriented Units (EOUs) and units in SEZs. Procedural conditions to be followed by Advance Authorisation holders will be provided in the Handbook of Procedures. Export of Wheat Flour (Atta) by 100% Export Oriented Units (EOUs) and units in the SEZ will be subject to pre import of wheat condition. The Wheat Flour (Atta) will have to be exported within 180 days from the date of import of the wheat consignment. The import shall be subject to actual user condition and transfer of imported raw material, for any purpose including job work, shall not be permitted. Procurement of domestic wheat for the purpose of export of wheat flour will not be allowed. Entire production of milli ng process has to be exported and no remnants of the milling process will be allowed to be retained in the Country, except the wastage approved by Norms Committee. At the time of export, Bill of Entry for imported wheat will be produced before the Customs Authorities and only on verification of the same export will be allowed.