India on Friday approved exports of 2.5 million tonnes of wheat and an additional 500,000 tonnes each of wheat products and sugar, lifting a ban imposed on wheat more than three years ago.
Earlier, a few months back, the government had lifted the ban on wheat products exports.
It had also permitted exports of 1.5 million tonnes of sugar in 2025-26 season that started in October 2025. India had banned exports of wheat on May 13, 2022
However, traders were apprehensive as to whether any substantial can happen now as globally Indian wheat was quoting at around Rs 2400 per quintal ($265 per tonne and assuming an exchange rate of 90.59), while current domestic market price varied between Rs 2500-2680 per quintal depending on the region where it was being sold.
“Indian wheat is highly overpriced in the international markets as our Minimum Support Price (MSP) which is fixed by the government is quite high which makes Indian wheat costlier than all competitors,” a senior industry official remarked.
The MSP for 2026-27 marketing season that will start in April itself is around Rs 2585 per quintal, while for the current season it is Rs 2425 per quintal.
Traders said exports can happen only when domestic market prices come down in the next few months under the weight of a surplus harvest.
India’s wheat production in 2025-26 marketing season is projected to cross the previous record of almost 118 million tonnes.
The decision to allow wheat exports comes ahead of the 2025-26 procurement season that is expected to start from April.
As of late January, wheat crops for the 2025-26 season have been sown in around 33.41 million hectares. That is 107 percent of the normal area and 6.13 per cent more than in the corresponding period last year.
Traders said India’s closing wheat stock as of March 31 this year is expected to be around 20 million tonnes, as against a buffer requirement of 7.5 million tonnes, while the government in an official statement said that it could be close to 18.2 million tonnes.
As of January 16, India had a 60-million-tonne stockpile of wheat and rice, as against a buffer requirement of 21.4 million tonnes.
“With ample wheat available in the open market and a robust 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,” said Navneet Chitlangia, president of Roller Flour Millers’ Federation of India.
The government statement said the decision to allow exports follows a comprehensive review of stock availability and price trends and it will not compromise food security.
The statement further said wheat stocks held by private entities in 2025-26 are estimated at around 7.5 million tonnes — nearly 3.2 million tonnes more than in the corresponding period last year and indicating a comfortable supply position.
In addition, total wheat availability in the central pool with the Food Corporation of India is projected at around 18.2 million tonnes as of April 1, 2026, according to the statement.
Officials said this substantial buffer would adequately meet domestic requirements even after permitting exports.
Extra Sugar Exports
Alongside wheat, the Centre has also decided to permit the export of an additional 0.5 million tonnes of sugar during the current Sugar Season 2025-26 to willing sugar mills.
Earlier, an export quota of 1.5 million tonnes had been allowed through an order dated November 14, 2025.
According to information furnished by sugar mills, only about 0.19 million tonnes of sugar has been exported up to January 31, 2026. Additionally, around 0.27 million tonnes has been contracted for export so far, the official statement said.
The newly approved 0.5 million tonnes export quota for sugar will be available to willing mills on the condition that at least 70 per cent of their allocated quantity is exported by June 30, 2026.
