Centre lifts ban on wheat exports after more than three years | Agriculture

India on Friday approved the export of 2.5 million tonnes of wheat and an additional 500,000 tonnes of wheat products and sugar, lifting a ban on wheat imposed more than three years ago.

Earlier, a few months ago, the government had lifted the ban on the export of wheat products.

It also allowed the export of 1.5 million tons of sugar in the 2025-26 season, which started in October 2025. India banned wheat exports on May 13, 2022.

However, with the global Indian wheat price around Rs 2400 per quintal (assuming US$ 265 per tonne and exchange rate 90.59), traders were now apprehensive about whether significant production would take place; The current local market price varied between Rs 2500-2680 per quintal, depending on the region where it was sold.

“Indian wheat is priced quite high in international markets as our Minimum Support Price (MSP) fixed by the government is quite high, making Indian wheat more expensive than all competitors,” said a senior industry official.

The MSP for the 2026-27 marketing season, which starts in April, is around Rs 2585 per quintal, while for the current season it is Rs 2425 per quintal.

Traders said exports could only happen if domestic market prices fall in the next few months under the weight of the harvest surplus.

India’s wheat production in the 2025-26 marketing season is expected to surpass the previous record of around 118 million tonnes.

The decision to allow wheat exports comes ahead of the 2025-26 procurement season, which is expected to start in April.

As of the end of January, wheat crops for the 2025-26 season were planted on approximately 33.41 million hectares. This is 107 percent of the normal area and 6.13 percent more than the same period last year.

Traders stated that India’s ending wheat stock this year is expected to be around 20 million tonnes as of March 31 against the buffer requirement of 7.5 million tonnes, while the government said in an official statement that this stock could be close to 18.2 million tonnes.

As of January 16, India had 60 million tons of wheat and rice stocks against its buffer need of 21.4 million tons.

Navneet Chitlangia, President of Indian Roller Flour Millers Federation, said, “With wheat in abundance in the open market and a strong harvest expected soon, the government has taken a calibrated decision to offload excess stocks through exports. This move aims to protect farmers’ interests by ensuring stable wheat prices.”

The government statement said that the decision to allow exports was made after a comprehensive review of stock availability and price trends and that it would not compromise food safety.

The statement also stated that wheat stocks held by private institutions in 2025-26 are estimated at around 7.5 million tonnes; This is approximately 3.2 million tonnes more than in the same period last year and indicates a comfortable supply position.

Additionally, according to the statement, the total wheat availability in the central pool with the Food Corporation of India is estimated to be around 18.2 million tonnes as of April 1, 2026.

This important buffer will adequately meet domestic needs even after exports are allowed, officials said.

Extra Sugar Export

Besides wheat, the Center has decided to allow additional export of 0.5 million tonnes of sugar to willing sugar mills in the current Sugar Season 2025-26.

An export quota of 1.5 million tons was previously allowed by an order dated November 14, 2025.

According to information received from sugar factories, only 0.19 million tons of sugar was exported until January 31, 2026. In addition, in the official statement, it was stated that approximately 0.27 million tons of export contracts have been made so far.

The newly approved sugar export quota of 0.5 million tons will be offered to willing factories on the condition that at least 70 percent of the allocated amount is exported by June 30, 2026.