India proposes lifting 3 year wheat-product export ban amid record stocks

India’s Food Ministry has proposed lifting the export ban on wheat-based products imposed in May 2022, nearly three years ago.

The move comes as wheat stocks reach 30.46 million tonnes (MT), well above the buffer norm of 20.52 MT for January 2026. The ministry has recommended allowing an initial export of 1 MT of wheat products.

The proposal, sent to the commerce ministry, cites strong crop prospects and ample domestic supplies. Officials argue that controlled exports can help India reclaim its traditional markets for flour, maida, and sooji.

Trade sources said the Food Corporation of India’s (FCI) open market sale scheme for bulk buyers, which began earlier this week, received a lukewarm response.

Only 69,000 tonnes of wheat were sold through e-auction at Rs 2,550 per quintal, against 0.2 MT on offer. Analysts say the strong stock position has helped stabilize retail prices.

Flour millers have welcomed the proposal. Navneet Chitlangia, president of the Roller Flour Millers’ Federation of India, said that the industry is expecting another bumper harvest this year due to surplus monsoon rains.

“Lifting restrictions will help us reclaim our traditional wheat product export markets,”he noted.

Before the export ban, India supplied wheat products to Africa, Gulf nations, and South Asian countries.

The 2022 ban was imposed due to a smaller harvest, rising inflation, and food security concerns. Today, wheat inflation has eased to 2.04% year-on-year in October, down from 3.67% in September.

Millers say allowing 1 MT of exports initially will not hurt domestic supply. It will improve capacity utilization in the milling sector and support price stability when the new crop arrives.

“Lifting the ban early will stabilize prices and benefit exporters, millers, and farmers,” said exporter Kunal Shah.

Food Minister Pralhad Joshi had indicated in September that the government would “positively” consider industry demands for wheat-product exports while keeping food security a priority.

Meanwhile, wheat sowing is progressing rapidly. So far, 2.27 million hectares have been planted, up 127% from last year.

The normal sown area is 31.23 million hectares, and sowing continues until early January. The new crop is expected in markets from mid-March.

The agriculture ministry projects wheat output at a record 117.5 MT for 2024–25, a 3.7% increase over the previous year.

Tags: millers, wheat-based products, export, wheat, India, stocks, ban