Amid increasing dissatisfaction among farmers regarding low mandi prices, the Indian government has opted to authorize the export of an additional 2.5 million tonnes (mt) of wheat, effectively doubling the total permitted volume to 5 mt. A formal notification from the Directorate General of Foreign Trade (DGFT) is forthcoming; however, this decision follows the approval of a high-powered inter-ministerial committee.
Despite the ongoing export ban implemented in 2022, India continues to fulfill shipments to friendly nations based on diplomatic requests.
“The Government of India has approved the export of an additional 2.5 mt of wheat, reinforcing its commitment to ensuring remunerative returns for farmers while maintaining stability in domestic markets. This decision follows a comprehensive review of current production, stock availability, and price trends,” the Food Ministry stated on Monday.
Wheat acreage for the Rabi 2026 season has risen to approximately 334.17 lakh hectares, compared to 328.04 lakh hectares in the previous year. This increase reflects strong farmer confidence in wheat cultivation, buoyed by an assured minimum support price (MSP) and robust procurement mechanisms, suggesting the likelihood of another productive harvest.
Lower than Last Year
Although the government has raised the wheat MSP by 6.6% to ₹2,585 per quintal for the 2025-26 crop year, an uptick from ₹2,425 per quintal in 2024-25, prevailing rates in mandis across Uttar Pradesh, Madhya Pradesh, Gujarat, and Rajasthan remain below this benchmark and are lower than the prices observed one year ago. Only farmers in Punjab and Haryana are managing to obtain MSP due to effective public procurement systems in those states.
Rahul Chauhan from I-Grain consultancy noted, “The sentiment in India’s wheat market, which had been under pressure for a considerable time, is now gradually becoming more positive. A clearer trend of quality-based pricing is likely to emerge soon,” referring to the crop damage caused by unseasonal rains and hailstorms.
Quality has been affected, with grains in various regions becoming discolored and blackened. Additionally, mandi arrivals are starting to decline, and increasing moisture content is altering market supply dynamics. Chauhan added that the price gap between high and low-quality wheat is expected to widen, indicating that the price of high-quality wheat may increase by ₹100-150 per quintal in the long term, though short-term prices could remain under pressure due to ongoing harvesting and anticipated higher arrivals.
Shipping Process
In a notification dated February 24, the DGFT reiterated that the export policy for wheat (HS Codes 10011900 and 10019910) remains ‘Prohibited’, although the export of 2.5 mt is now permitted. Further modalities for this export have been communicated in a separate public notice. Exporters must apply for permits online within the first ten days of each month and are required to complete physical shipments within six months of receiving the permits.
Additionally, the DGFT has permitted the export of 1 mt of wheat products to assist the Indian diaspora in purchasing familiar domestic brands such as atta, maida, and sooji. Initially, on January 16, 0.5 mt was authorized, followed by an additional 0.5 mt on February 25. Exporters must apply for a minimum of 2,500 tonnes of wheat products or 10,000 tonnes of wheat.
The ongoing restriction on the export of wheat flour and similar products under HS Code 1101 remains in effect, but the DGFT has allowed exports of up to 5 lakh tonnes of these products beyond existing policy conditions. In November 2025, the Ministry of Consumer Affairs, Food & Public Distribution had forwarded an industry request to the DGFT for permitting the export of wheat products like atta, sooji, and maida, suggesting an initial cap of 10 lakh tonnes.
