Wheat export ban lifted as govt looks to boost farmer incomes, revive sowing
The Union government on Monday (August 24, 2026) lifted the export ban on wheat and wheat products with immediate effect, a move designed to support farmers' incomes amid falling domestic prices. The export policy for wheat has been revised from "prohibited" to "free", the Directorate General of Foreign Trade (DGFT) said in notifications. Similar restrictions on wheat flour, maida, semolina and wholemeal atta have also been removed.
India, the world's second-largest wheat producer, had banned wheat exports in May 2022 to control domestic prices after a heatwave hit output. The ban was a major shift from the country's role as a reliable exporter of wheat to neighbouring and African nations. Over the past two years, production has rebounded, and government procurement has risen steadily.
Earlier this year, the government permitted export of 50 lakh tonnes of wheat and 10 lakh tonnes of wheat products. However, of the total 60 lakh tonnes allowed, only 2.5 lakh tonnes have been shipped so far, Food Secretary Sanjeev Chopra told PTI.
Explaining the rationale for the complete lifting of the ban, Mr. Chopra said, "The export ban has been lifted in the interest of farmers. The domestic wheat prices are depressed currently. Allowing exports will increase the domestic market prices and encourage good sowing in the coming rabi season, and farmers will get better prices." He added that the country has adequate wheat stock to meet demand and check prices.
The export of wheat, which was earlier permitted through a licensing route, has now been simplified, he said.
India's wheat production touched a record 120.65 million tonnes in the 2025-26 crop year (July-June), against 117.94 million tonnes in the previous year. The Food Corporation of India (FCI) holds nearly 49 million tonnes of wheat as buffer stock, which is well above the prescribed norms. This comfortable stock position provides the government the headroom to allow exports without risking domestic availability.
According to government data, the all-India average retail price of wheat stood at ₹31.46 per kg on Monday, while wheat flour retailed at ₹37.3 per kg. Both prices are flat compared with the year-ago period, indicating stable consumer prices despite the record production.
Agricultural economists say the decision to lift the ban could help realign domestic prices with global benchmarks, benefiting growers. However, the full impact will depend on global demand and logistics. The government has not specified any minimum export price or quantity cap, leaving it to market forces.
Farmers' unions have welcomed the move, saying it will provide relief to growers who faced falling prices at mandis during the last procurement season. Some experts, however, caution that the government must monitor the situation to ensure that domestic prices do not rise sharply, especially in the lean season before the rabi harvest.
The decision comes ahead of the rabi sowing season, and the government expects that opening exports will signal better returns to farmers, encouraging them to expand wheat acreage. The Centre has also been promoting crop diversification, but wheat remains a key staple.
India's wheat exports had peaked at over 70 lakh tonnes in the 2021-22 fiscal year before the ban. With the lifting of the ban, India is expected to regain some share in the global wheat market, though international prices and competition from other exporters will determine the actual volumes.
The government has emphasised that the buffer stock is sufficient to meet the requirements of the public distribution system and other welfare schemes. The FCI's stock position will be reviewed periodically, and the export policy may be adjusted if the need arises, officials indicated.
In the long run, the decision could provide policy certainty for traders and exporters, who had been operating under restrictions since 2022. The simplification of the export process is likely to reduce transaction costs and improve ease of doing business.
As the country moves into the next crop cycle, all eyes will be on domestic mandi prices and the sowing progress. The lifting of the export ban is a significant step towards normalising India's position in the global wheat trade, while keeping the interests of farmers at the forefront.
