The Indian government is likely to allow the export of refined flour (maida) and semolina (suji) made from imported wheat in addition to wheat flour (atta) against advance authorisation and by units in Special Economic Zones (SEZs) and export-oriented units (EOUs), if such requests come from processors, an official tracking the matter has said.
Last week, the government allowed the export of wheat flour against advance authorisations and by SEZ units and EOUs, to be produced from imported wheat and without procurement of domestic wheat.
“Atta, maida and suji have the same HS code. But in last week’s notification, in the item description, only wheat flour is mentioned. So, at present only export of wheat flour is allowed. However, if processors wants to export maida and sooji as well, they will have to apply to the government and wastage norms need to be fixed by norms committee,” the official told businessline.
After the government extended the ban on export of wheat to wheat products including wheat flour, refined flour and semolina in August, wheat processors sought government permission to import wheat to carry out value-added exports.
Heatwave hits crop
New Delhi banned wheat exports in May this year after an unseasonal heat wave affected the crop and domestic prices increased. The ban on wheat exports and, subsequently, on wheat flour, refined flour and semolina was placed to ensure that there is no shortage in the domestic market.
If the government allows export of refined flour and semolina as well, processors will need to follow the same conditions prescribed for export of wheat flour, the official said.
According to the notification issued for wheat flour last week, exports that take place under the advance authorisation scheme–which allows duty free imports of inputs provided it is mandatorily used in products that are to be exported within a specified time — the procedures to be followed will be provided in the handbook of procedures.
Actual user condition
“Export of wheat flour (atta) by 100 per cent 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,” the notification said.
Entire production of milling process has to be exported and no remnants of the milling process will be allowed to be retained in the country, except the wastage that is approved by the Norms Committee, it said.