MUMBAI, Aug 25 Reuters India39;s cabinet on Thursday approved a policy to restrict wheat flour exports to calm prices in the local market, the government said in a statement.

New Delhi banned wheat exports in midMay as a scorching heatwave curtailed output and domestic prices hit a record high. In July India asked traders to secure permission before exporting wheat flour. 

The ban on wheat exports boosted demand for Indian wheat flour and the country39;s flour exports jumped 200 during AprilJuly 2022 from a year ago and lifted prices in the local market, the government said.

There was a policy not to prohibit or put any restrictions on the export of wheat flour. Therefore, a partial modification of the policy was required….to ensure food security and put a check on mounting prices, it said.

Local wheat prices jumped to a record 24,500 rupees 306.71 per tonne this week.

That was up nearly 20 from recent lows that followed the government39;s surprise ban on exports on May 14, ending hopes India could fill the market gap left by a plunge in exports from the Black Sea region following Russia39;s Feb. 24 invasion of Ukraine.

1 79.8800 Indian rupees

Reporting by Rajendra Jadhav; Editing by Emelia SitholeMatarise

Source Reuters