December 23: India has partially lifted the ban on export of wheat to Nepal. The southern neighbour had imposed a ban on export of wheat seven months ago in a bid to protect its domestic industry in the wake of Russia-Ukraine war.

It may be noted that India imposed a ban on wheat exports on April 14 due to the decline in domestic production. Despite the ban, New Delhi said that wheat will be exported to the countries that are in need of food security by setting quotas.

Although the flour industries of Nepal require 600,000 metric tons of wheat annually, India has decided to export 50,000 tons of wheat to Nepal.

The Directorate General of Foreign Trade of India on Wednesday decided to export wheat to Nepal upon request from the Government of Nepal.

The Government of Nepal had requested India to lift the ban on export of wheat arguing that the product was being smuggled into Nepal in huge quantities despite the ban.

Following the request of Nepal, the Directorate General of Foreign Trade of India on Wednesday permitted the export of 50,000 tonnes of wheat till March 31, 2023, the state-owned national news agency of Nepal (RSS) reported.

India has asked Nepal to submit the details regarding the quantity of wheat it requires.

“The traders in Nepal were forced to buy wheat in the black market as the price soared with the ban. The price had increased by 30 to 40 percent,” RSS added.  Around 32 flour mills had to be closed due to the unavailability of wheat.

India is the world's second largest wheat producer after China. Wheat supply through the Black Sea is now halted due to tensions between Russia, the third largest producer of wheat, and Ukraine, the eighth largest producer. This time, India imposed a ban on exports citing the decline in wheat production in India due to the scorching heat of March as well as the Russia-Ukraine war.