Amid growing farmer dissatisfaction over low mandi prices, the government has decided to permit the export of an additional 2.5 million tonnes (mt) of wheat, doubling the total allowed volume to 5 mt. While a formal notification from the Directorate General of Foreign Trade (DGFT) is pending, the move follows approval from a high-powered inter-ministerial committee.
Although the 2022 export ban remains in place, India continues to fulfil 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. The decision follows a comprehensive review of current production, stock availability, and price trends,” the Food Ministry said in a statement Monday.
Wheat acreage during the Rabi 2026 season has increased to approximately 334.17 lakh hectares, compared to 328.04 lakh hectares last year. This rise reflects strong farmer confidence in wheat cultivation, supported by assured minimum support price (MSP) and robust procurement mechanisms, and indicates the likelihood of another strong harvest, it said.
Lower than last year
Although the government has increased wheat MSP by 6.6 per cent to ₹2,585/quintal during the 2025-26 crop year (July-June) against ₹2,425/quintal in 2024-25, the prevailing rates in mandis in Uttar Pradesh, Madhya Pradesh, Gujarat and Rajasthan are lower than the benchmark price as well as from year-ago levels. But, farmers in only Punjab and Haryana are able to receive MSP for their wheat due to public procurement through a strong mandi infrastructure.
Rahul Chauhan of I-Grain consultancy said that the sentiment in India’s wheat market, which had remained under pressure for a long time, is now gradually turning positive. “A clearer trend of quality-based pricing is likely to emerge in the near future,” he said in a note referring to crop damage due to unseasonal rains and hailstorms.
The quality of the produce has been affected, with grains turning discoloured and black in many areas, he said, adding that arrivals in mandis have started to decline. Besides, increased moisture content has altered the supply dynamics in the market. The price gap between good and lower quality wheat is expected to widen, he said. “There are indications that in the long term, prices of good-quality wheat may increase by ₹100-150 per quintal. But, in the short term, prices may remain under pressure due to ongoing harvesting across the country and the likelihood of higher arrivals in the coming weeks,” he said.
Shipping process
The DGFT, in a notification on February 24, had said that the export policy of wheat (HS Codes 10011900 and 10019910) continues to remain ‘Prohibited’, but export of 2.5 mt is permitted. Detailed modalities for the purpose was notified through a separate public notice on the same day. Exporters need to to apply for permits online during a window of first 10 days of each month and need to complete the physical shipments within six months of receiving the permits.
The DGFT had also allowed export of 1 mt of wheat products to help Indian diaspora able to buy atta, maida and sooji of domestic brands which they easily identify. First on January 16, the notification issued for 0.5 mt of wheat products export and later on February 25 additional 0.5 mt was allowed. However, any exporter seeking export permit has to apply for minimum 2,500 tonne of wheat products and 10,000 tonnes of wheat.
“The export of wheat flour and related products under HS Code 1101 – wheat or meslin flour (atta), maida, samolina (ravi/shirgi), wholemeal atta and resultant atta – shall continue to remain ‘Prohibited’. However, export to the extent of 5 lt of wheat flour and related products under HS Code 1101, over and above the existing policy conditions, is allowed,” the DGFT said.
The Ministry of Consumer Affairs, Food & Public Distribution in November 2025 had forwarded an industry demand to the DGFT for allowing export of wheat products such as atta, sooji and maida, suggesting it could be start with a cap of 10 lt.
Published on April 20, 2026
