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Government Permits Export of 25 Lakh Tonnes of Wheat to Stabilize Domestic Market​

Centre Allows Limited Wheat Exports Despite Prohibited Policy Status​

New Delhi, February 24: The government has permitted the export of 25 lakh metric tonnes of wheat, even as the overall export policy for the grain continues to remain under the prohibited category.

The decision, taken earlier this month, was formally notified on Tuesday by the Directorate General of Foreign Trade under the Ministry of Commerce and Industry.

In its notification, the DGFT stated that while the export policy for wheat remains prohibited, an exception has been granted allowing the shipment of 25 LMT of wheat. The detailed modalities governing these exports will be notified separately.

Additional 5 LMT Wheat Flour Exports Also Approved​

In a separate notification, the DGFT clarified that the export of wheat flour and related products will continue to be restricted. However, an additional 5 LMT of wheat flour and related products has been permitted for export.

The government also allowed exports beyond the 25 lakh tonnes in cases where shipments are made based on specific permissions granted to other countries to meet their food security requirements, provided such requests are made by their respective governments.

Decision Aimed at Market Stability and Farmer Support​

On February 13, the Centre announced that the move was intended to stabilize domestic markets and ensure remunerative returns to farmers amid a comfortable stock position.

According to the Ministry of Food Processing Industries, the decision followed a comprehensive assessment of wheat availability and prevailing price trends. The ministry reiterated that the step reflects the government’s commitment to protecting farmers’ interests while maintaining food security.

Comfortable Wheat Stock Position in 2025-26​

Wheat stock availability with private entities during 2025-26 stands at approximately 75 lakh tonnes. This is nearly 32 lakh tonnes higher than the corresponding period last year, indicating a comfortable supply scenario in the country.

As of April 1, 2026, total wheat availability in the central pool with the Food Corporation of India is projected at around 182 lakh tonnes. The government stated that the permitted exports will not affect domestic food security requirements.

Higher Wheat Acreage Signals Strong Production Outlook​

Wheat acreage in Rabi 2026 has increased to about 334.17 lakh hectares, compared to 328.04 lakh hectares in the previous year. The rise in sowing area reflects strong farmer confidence, supported by assured Minimum Support Price and procurement mechanisms.

With higher stock availability, softening prices, and expectations of increased production, the government said the export decision will help prevent distress sales during peak arrivals. The move is expected to stabilize domestic prices, improve market liquidity, enable efficient stock rotation, and strengthen farmers’ incomes while safeguarding national food security.
 

Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.

The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.

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