Government allows flour exports despite ban on grain

The government today approved the export of processed or value added agricultural products even in the event of a restriction or ban on export of the basic farm produce.

The cabinet committee on economic affairs (CCEA) has approved a proposal of the department of commerce for allowing export of processed or value-added agricultural products even in the event of restriction or ban on export of the basic farm produce.

According to the ministry, exports of processed and value-added products currently constitute a very miniscule portion of India's overall exports and hence their exports would only have a marginal impact on the country's exports. Also, the available processing capacity in the country is only marginal compared to the availability of basic goods and the number of consumers in the country.

While this could also help avoid wastage of perishable products and encourage value addition, the government said it has an open policy for this sector.

Accordingly, the government will now allow export of the following items:

• Wheat or meslin flour
• Flours of maize, oats etc
• Cereal groats and meal pellets
• Cereal grains otherwise worked except rice of heading
• Germ of cereals, whole, rolled, flaked or ground
• Other cereals
• Milk products, including casein and casein products etc
• Butter and other fats derivatives from milk, dairy spread, etc,
• Cheese and curd
• Value added products of onion
• Peanut butter 

As of now, India's agricultural product exports consist mainly of raw or primary products, unprocessed or semi processed agriculture commodities, products that are susceptible to restrictions or bans owing to various reasons such as bad weather and food security issues. Such bans are generally applied across products in both processed and raw material forms.