India allows export of select processed foods

The government has allowed export of certain processed foods such as wheat flour, butter, cheese and oats while retaining the ban on shipments of the basic items.

A notification issued by the Directorate General of Foreign Trade (DGFT) under the commerce ministry listed 10 processed and value-added agricultural products that would be exempt from export curbs with immediate effect.

These include wheat flour, cereal flour, cereal groats and meal pellets, milk products (including casein), butter, cheese and curd, value added products of onion, peanut butter and other cereal items.

''Export of above processed and/or value added agricultural products will be exempted from any restriction/ ban even in the event of restriction/ban on the export of basic farm produce,'' the notification said.

Faced with mounting trade deficit, the government is now looking to tap demand for processed foods in countries with large Indian population to boost export earnings.

The government had also, last week, allowed export of premium edible oils from the country even as it kept the ban of export of such oils in their raw or basic form.