Wheat export ban lifted, but high prices may limit shipments
Despite government stocks easing food-security worries, high prices may hinder immediate large exports, with actual shipments remaining at around 60,000 tonnes.
India lifted its export ban on wheat on Monday, allowing traders to ship grain and flour without quotas after months of restricted exports. The Directorate General of Foreign Trade (DGFT) announced the policy change on August 24, lifting the "Prohibited" status on durum wheat and other wheat products and allowing free exports immediately.
The government had previously only permitted limited exports, initially opening a quota of 2.5 million tonnes in February and later approving another 2.5 million tonnes, bringing the total permissible export quantity to 5 million tonnes.
While the decision aims to alleviate food-security concerns, traders warn that high Indian wheat prices may limit initial shipments. The Food Corporation of India's wheat stocks, standing at 50.5 million tonnes as of August 1, are significantly above a year ago and at a five-year high. Despite this comfortable supply position and a successful government wheat procurement of 35.76 million tonnes during the 2026-27 marketing season, Indian wheat remains more expensive than global prices.
With Black Sea shipments disrupted by Russian and Ukrainian attacks and Chicago wheat futures up 17% since early July, traders say Indian wheat must reach around ₹2,600 per 100 kg, including freight, to break even, but currently hovers around ₹2,700 per 100 kg. Consequently, actual exports so far have been minimal, totaling only about 60,000 tonnes of wheat products, apart from limited shipments to Bangladesh.
Written by urgent.news from Hindustan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
