India Lifts Four-Year Wheat Export Ban to Boost Farmers’ Earnings

India has lifted its four-year ban on wheat exports with immediate effect, opening overseas markets to Indian wheat and wheat products as the government looks to improve returns for farmers amid record production and high domestic stocks.

The Directorate General of Foreign Trade has revised the export policy for wheat from “prohibited” to “free”. The decision covers several wheat varieties, including durum wheat, along with wheat flour, maida, semolina and wholemeal atta.

India, the world’s second-largest wheat producer, had imposed major restrictions on wheat exports in May 2022 as domestic prices rose and concerns over food security intensified. The latest decision marks a significant policy reversal after four years of restrictions.

The government had earlier allowed limited exports through a quota-based licensing system, permitting shipments of 50 lakh tonnes of wheat and 10 lakh tonnes of wheat products. However, only around 2.5 lakh tonnes of the permitted 60 lakh tonnes had been exported.

The decision to fully relax export restrictions is aimed at supporting wheat farmers, who have been affected by subdued domestic prices despite a strong production season.

Food Secretary Sanjeev Chopra said allowing wheat exports could help improve market prices and encourage farmers ahead of the upcoming rabi sowing season. He said the country has sufficient supplies to meet domestic demand while also preventing a sharp increase in consumer prices.

India produced a record 120.65 million tonnes of wheat during the 2025-26 crop year, compared with 117.94 million tonnes in the previous year. The Food Corporation of India currently holds nearly 49 million tonnes of wheat in its buffer stocks, indicating a substantial domestic surplus.

Domestic wheat prices have remained relatively stable. The average retail price of wheat stood at Rs 31.46 per kg, while wheat flour was priced at Rs 37.30 per kg.

India originally imposed the wheat export ban in May 2022 following the Russia-Ukraine war, which disrupted supplies from two of the world's major wheat exporters and pushed global wheat prices sharply higher. International buyers began turning towards India as an alternative supplier, while domestic prices also increased amid rising global demand, higher fuel costs and concerns over the impact of a heatwave on production.

The government subsequently restricted exports to protect domestic availability and control food inflation, although limited exceptions were permitted for certain shipments and food-security requirements of other countries.

The decision to reopen exports also comes at a time when global wheat supplies are again facing uncertainty. Disruptions to shipping and grain infrastructure in the Black Sea region have affected exports from Russia and Ukraine, forcing several buyers to explore alternative suppliers.

Asian importers have increasingly looked towards Australia, Argentina and North America for wheat supplies, while countries heavily dependent on Russian and Ukrainian grain are facing higher costs and supply uncertainty.

India's return to the global wheat export market could provide an additional source of supply for buyers across Asia, Africa and the Middle East. However, the actual volume of exports will depend on international prices, India's competitiveness and the availability of export-quality wheat.

For Indian farmers, the removal of the export ban could create additional demand and potentially improve domestic prices, while also giving India an opportunity to regain its position in the global wheat trade.