The Food Ministry on Friday lifted a nearly four-year-old ban on wheat exports, approving the shipment of 2.5 million tonnes (MT) of grains and an additional 0.5 MT of processed products, citing surplus domestic stock and prospects of a record harvest.
The ministry’s decision followed a review of available stocks and market prices, just weeks before the start of the new wheat harvest.
According to the Food Ministry, grain stock currently held by private entities stands at 7.5 MT, nearly 3.2 MT higher than the corresponding period last year.
“This substantial year-on-year increase indicates a comfortable supply position in the country,” it stated.
The Food Corporation of India (FCI) has projected wheat stocks of 18.2 MT on April 1, against a buffer of 7.6 MT.
Surplus vs. Strategy
The ministry said allowing wheat exports would not affect domestic food security, as government procurement for the 2026-27 marketing season begins on April 1.
A trader told FE that current market prices of Rs 2,675 per quintal are lower than prices at the start of last season in April 2025.
However, global wheat prices currently hover around $220–$240 per tonne, against India’s domestic price of $280 per tonne, due to abundant global harvests. This may make exports from India less remunerative.
Last month, the government had lifted a more-than-three-year-old ban on exports of wheat products, including flour, maida, semolina, and wholemeal atta, allowing shipments of 0.5 MT.
“With ample wheat in the open market and a robust harvest expected soon, the government has opted for calibrated release of excess stocks via exports. This move safeguards farmers’ interest by stabilising wheat prices,” Navneet Chitlangia, president, Roller Flour Millers’ Federation of India, told FE.
India, the world’s second-largest wheat producer after China, had imposed the ban on wheat and wheat-product exports in May 2022 due to concerns over food security, a smaller harvest, and rising inflation.
At the beginning of the month, FCI held 25.93 MT of stock. Trade analysts say this comfortable stock position has contributed to price stability in retail markets.
The country’s wheat production in the 2025-26 crop year is expected to surpass last year’s record of 117.94 MT, thanks to higher acreage and favourable crop conditions, Agriculture Minister Shivraj Singh Chouhan recently stated.
The area under wheat this season has increased to 33.41 million hectares (mha), 3% higher than last year, exceeding the normal sown area of 31.2 mha.
“This reflects continued farmer preference for wheat cultivation due to assured MSP and procurement prospects and signals the likelihood of another robust harvest,” according to an official note.
Beyond Grains
In addition, the Food Ministry also approved an additional 0.5 MT of sugar exports in the current 2025-26 sugar season (October–September), over and above the 1.5 MT of sweetener shipment approved in November 2025.
According to sugar mills, only about 0.2 MT of sugar has been exported up to the end of last month, while 0.27 MT of sweetener has been contracted for exports.