India Lifts Wheat Export Curbs, Shifts To Free Trade After Four Years

(MENAFN- Live Mint) The Centre on Monday allowed wheat exports without any conditions, moving the commodity from the restricted category to the free export category. The change in policy will take effect immediately, said a government order.

The move marks a significant change in the country's wheat trade policy. The government imposed a broad restriction on wheat exports in May 2022 amid concerns over domestic availability and prices. Restrictions were subsequently extended to wheat flour and related products.

The policy change also covers wheat products such as atta, maida, semolina (rava/suji), wholemeal atta and wheat or meslin flour.

The government started easing the restrictions this year as domestic supplies improved. In January, it permitted exports of 500,000 tonnes of wheat products. It subsequently allowed another 500,000 tonnes of wheat products and 2.5 million tonnes of wheat, before approving a further 2.5 million tonnes of wheat in April.

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That took the permitted export quantity to 5 million tonnes of wheat and 1 million tonnes of wheat products.

The April decision was aimed at improving market liquidity and helping manage stocks during the peak arrival season. The government had also said the move could prevent distress sales, support farmer incomes and help stabilize domestic prices while safeguarding food security.

Monday's notifications go beyond that calibrated approach by removing the quantitative framework altogether for the specified products.

“The move from a quota-based export regime to free exports is a significant shift because it gives exporters the flexibility to respond to international demand without waiting for the government to allocate additional quantities. With wheat production at a record level and domestic supplies comfortable, the policy can provide an additional market for surplus wheat and support farmer realizations,” said Binod Anand, a member of the government's committee on minimum selling price.

However, the actual benefit to farmers will depend on international prices and the competitiveness of Indian wheat after accounting for logistics and freight costs, he said.

Wheat production

The decision comes after a year of strong agricultural output and a favourable wheat production outlook.

The agriculture ministry's third advance estimates, released by agriculture minister Shivraj Singh Chouhan in May, pegged 2025-26 wheat production at a record 120.657 million tonnes, up from 117.945 million tonnes a year ago. Total foodgrain production was estimated at a record 376.563 million tonnes.

India's traditional wheat export markets include Bangladesh, the largest buyer, as well as Indonesia, the Philippines, Vietnam, Sri Lanka and Gulf countries such as the United Arab Emirates. During global supply disruptions such as the Ukraine war, Indian wheat exports had briefly expanded to Egypt and Turkey just before the ban.

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Prior to the export ban, India was a significant global seller of wheat, with shipments worth around $2.1 billion in FY22 and around $1.5 billion in FY23. Exports slumped after the restrictions, falling to $56.74 million in FY24 and to just $2.03 million in FY25, when the cargoes went largely on a government-to-government basis.

India exported wheat worth $10.23 million in FY26, while exports during April-June of FY27 were already valued at $9.69 million, nearly 95% of the previous fiscal year's total in just the first three months.

The latest data from the food and agriculture organization (FAO) showed its Food Price Index averaged 131.1 points in July, up 0.6% from June and marking the second consecutive monthly increase. The cereal price index rose 3.4% during the month, while global wheat prices climbed 5.8% and were 9.9% higher than a year ago.

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