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Aug
25

India Reopens Wheat Exports After Four-Year Freeze

India has reversed a major wheat trade restriction by removing the export ban on wheat and a range of wheat-based flour products after four years. The change comes as domestic production reaches record levels and government-held stocks are considered sufficient to meet internal requirements. The move signals a shift from a policy focused primarily on protecting domestic supplies towards restoring access to international markets.

The Directorate-General of Foreign Trade (DGFT) has moved wheat, durum wheat and products such as atta, maida, semolina, wholemeal atta and resultant atta from the “prohibited” category to “free” exports, effective immediately. The decision applies to both wheat and wheat flour products.

India introduced the restrictions in May 2022, when concerns over domestic availability and rising food prices prompted the government to stop wheat exports. Controls were later extended to flour and other processed wheat products in August 2022. The policy remained largely restrictive even as domestic conditions gradually improved.

With wheat production and stocks strengthening, the government began cautiously reopening exports earlier this year. In February and April, exporters were permitted to ship a combined 5 million tonnes of wheat and 1 million tonnes of wheat products through a controlled allocation system. However, actual exports remained far below the permitted quantities. Industry estimates indicate that less than 3 lakh tonnes of wheat and under 1 lakh tonne of wheat products had been exported so far.

The complete removal of restrictions now gives exporters greater flexibility and could help restore India’s presence in global wheat markets. Farmers may also benefit if wider export opportunities support better price realisation. For exporters and flour mills, the decision provides an opportunity to rebuild international business that weakened during the prolonged restriction. However, rebuilding these markets may take time, particularly because international  processing facilities have expanded during India’s absence.

The policy shift also comes at an important moment for global grain trade. Disruptions affecting Black Sea wheat supplies have contributed to tighter international availability and higher prices. India’s return as a major supplier could therefore provide additional options for countries that depend heavily on imports, particularly across Asia, Africa and West Asia.

The challenge for policymakers will now be to maintain the right balance between domestic food security and export ambitions. With supplies currently comfortable, opening the trade channel can support farmers and exporters while strengthening India’s position in global wheat markets. A predictable export policy will be equally important if India wants to regain the markets lost during the four-year restriction period.