India Lifts Wheat Export Restrictions: Surplus Stocks Drive Change

The Indian government has lifted all restrictions on the export of wheat and wheat products, shifting them from a ‘restricted’ to a ‘free’ export category with immediate effect. This decision, formally noted as effective August 25, 2026, is driven by surplus domestic stocks and the prospect of a record harvest.

Policy Reversal and Background

This policy reversal comes after the removal of a nearly four-year-old ban in February 2026. The initial restriction, imposed in May 2022, was a response to food security concerns, a smaller harvest, and rising inflation. The Directorate General of Foreign Trade (DGFT) confirmed that various wheat products are now permitted for export without conditions.

• Wheat or meslin flour (atta)
• Maida
• Semolina (rava)
• Wholemeal atta
• Resultant atta

Despite the ban being lifted earlier in February 2026, actual exports remained low. Only 0.15 million tonnes (MT) of wheat and 0.05 MT of wheat products were exported, falling short of the government’s permitted quotas.

• Permitted wheat quota: 5 MT
• Permitted wheat product quota: 1 MT

Domestic Supply and Market Conditions

India’s central pool currently holds substantial wheat reserves. The Food Corporation of India (FCI) reported holding over 48.74 MT of wheat, significantly exceeding the mandated buffer and strategic reserve norm for October 1. This strong supply position underpins the government’s decision.

• FCI Central Pool Wheat Stock: 48.74 MT
• Buffer and Strategic Reserve Norm (October 1): 20.52 MT
• Domestic Wheat Price for Bangladesh Shipments: $310 per tonne
• Retail Wheat Inflation (July 2026): 0.26%
• Average Retail Wheat Price (Monday): Rs 31.46/kg (down from Rs 31.69/kg a year ago)

Industry Reaction and Global Position

The Roller Flour Millers’ Federation of India welcomed the government’s move. Its president, Navneet Chitlangia, highlighted that this decision acknowledges the strength and competitiveness of India’s milling sector. He expects it to help Indian millers regain their presence in international markets.

Chitlangia emphasized that the policy change positions India as a reliable and respected global supplier of wheat and wheat products. India is the world’s second-largest wheat producer, following China, and has historically supplied various countries.

• Bangladesh
• Indonesia
• Philippines
• Vietnam
• Sri Lanka
• Gulf countries, including the United Arab Emirates

Record Harvest Projections

Adding to the favorable conditions, Agriculture minister Shivraj Singh Chouhan announced in May that wheat production for the 2025-26 crop year (July-June) is projected to reach a record. The estimated output surpasses previous years.

• Estimated 2025-26 Wheat Production: 120.657 MT
• 2024-25 Wheat Production: 117.945 MT

This strategic move underscores India’s confidence in its agricultural output and its intent to leverage its surplus for global trade. It marks a significant step towards re-establishing India as a consistent and competitive player in the international wheat market.