Centre lifts ban on wheat exports after more than three years

Allows extra export of 0.5 million tonnes of sugar for 2025-26

In a major decision, the Centre today approved the export of 2.5 million tonnes of wheat along with an additional 0.5 million tonnes of wheat products, thereby lifting the ban imposed more than three years ago on wheat.

 

The ban on wheat product exports was lifted a few months ago.

 

In addition to wheat, the Central government has also approved an additional export of 0.5 million tonnes of sugar in 2025-26, which started in October. It had earlier permitted exports of 1.5 million tonnes of sugar in 2025-26.

 

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

   

India’s wheat production in the 2025-26 marketing season is projected to cross the previous record of almost 118 million tonnes.

 

As of late January, wheat crops for the 2025-26 season have been sown in around 33.41 million hectares, which is 107 per cent of the normal area and 6.13 per cent more than in the corresponding period last year.

 

As of January 16, 2026, India was sitting on a huge stockpile of wheat and rice, estimated at around 60 million tonnes, as against a buffer requirement of 21.4 million tonnes.

 

In wheat alone, traders said India’s closing stock as of March 31, 2026, is expected to be around 20 million tonnes, as against a buffer requirement of 7.5 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,” Navneet Chitlangia, president, Roller Flour Millers’ Federation of India, said.

 

An official statement said the decision to allow exports follows a comprehensive review of current stock availability and price trends, with the Centre asserting that the move will not compromise domestic food security. Wheat prices in the open market were trading at around ₹2,675-2,680 per quintal in Delhi, while the MSP for the 2025-26 season has been fixed at around ₹2,585 per quintal.

 

Trade sources said Indian wheat was selling in international markets at around $265 per tonne, which is around ₹2,400 per quintal.

 

The official statement said wheat stocks held by private entities during 2025-26 are estimated at around 7.5 million tonnes, nearly 3.2 million tonnes higher than in the corresponding period last year, indicating a comfortable supply position.

 

In addition, total wheat availability in the central pool with the Food Corporation of India (FCI) is projected at around 18.2 million tonnes as of April 1, 2026, as per the official statement.

 

Officials said this substantial buffer would adequately meet domestic requirements even after permitting exports.

 

Wheat acreage during the ongoing rabi 2026 season has also risen to about 33.41 million hectares, compared to 32.04 million hectares last year.

 

The increase reflects strong farmer confidence in wheat cultivation, supported by the assured minimum support price (MSP) and procurement mechanisms. The higher sowing area also signals expectations of another robust harvest.

 

With higher stock availability, softening prices, and peak market arrivals under way, the government said allowing exports would help prevent distress sales by farmers, the official statement said.

 

It said the export window is expected to improve market liquidity, enable efficient stock rotation, and support price stability, thereby strengthening farm incomes while safeguarding national food security.

 

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.

 

The quota will be distributed on a pro-rata basis among eligible mills. Mills are required to submit their willingness within 15 days from the date of issuance of the order. The allocated export quota cannot be swapped or exchanged with other mills.

 

The government said the additional sugar export window would help manage surplus availability in the domestic market and facilitate higher shipments, complementing efforts to balance supply and support the sector.