1 week ago
India Ends Wheat Export Curbs After Three Years
India has started allowing wheat and some wheat products to be sold abroad again.
These products include flour, maida, semolina and wholemeal atta.
India mostly stopped wheat exports in May 2022.
The government wanted to protect food supplies and control rising prices at home.
It had already allowed some limited exports in February.
One report says India’s latest harvest reached a record 120.6 million tonnes.
Another report gives a lower forecast of 110–120 million tonnes because rain and hail damaged some crops.
More Indian wheat could help countries that buy wheat from other nations.
This change comes while fighting is disrupting some grain shipments from the Black Sea region.
India immediately changed its wheat export policy from prohibited to free, including Durum wheat.
Exports of wheat flour, maida, semolina and wholemeal atta are also allowed.
The restrictions began in May 2022 amid food-security and domestic-price concerns following the Russia-Ukraine war.
The government had permitted limited shipments in February, including 25 lakh tonnes of wheat.
Reports differ on production prospects: one cites a record 120.6 million tonnes, while another projects 110–120 million tonnes after weather damage.
- Who
- The Government of India, through the Directorate General of Foreign Trade, changed the export policy.
- What
- India lifted its wheat export ban and allowed exports of wheat flour, maida, semolina and wholemeal atta.
- Where
- The policy applies to exports from India and could affect wheat supplies in Asia, Africa and the Middle East.
- When
- The change took effect immediately; restrictions had been in place since May 2022, with limited shipments allowed in February.
- Why
- The government cited improved availability and sought to respond to domestic supply and price conditions, while additional exports may ease international shortages.
Domestic Food Security
International Supply Relief
Reason for earlier restrictions
Domestic Food Security
The government restricted exports after a heat wave threatened the domestic harvest and officials sought to protect food supplies and control rising prices.
International Supply Relief
Improved supplies and the government’s decision to reopen exports indicate greater availability for overseas buyers.
Current supply outlook
Domestic Food Security
Weather damage and differing production estimates suggest that domestic supply remains subject to uncertainty.
International Supply Relief
The cited 120.6-million-tonne harvest and forecasts of substantial stockpiles suggest India may have wheat available for export.
Effect on global markets
Domestic Food Security
Disruptions to Black Sea grain shipments show that international wheat markets remain vulnerable to geopolitical shocks.
International Supply Relief
Additional Indian shipments could ease supply pressures in import-dependent countries across Asia, Africa and the Middle East.
Key facts
- Policy change
- Wheat exports were changed from prohibited to free with immediate effect.
- Products covered
- Wheat, Durum wheat, wheat flour, maida, semolina and wholemeal atta.
- Earlier allowance
- In February, the government permitted exports of 25 lakh tonnes of wheat.
- Restriction period
- India largely prohibited wheat exports beginning in May 2022.
- Production figures
- One report cites a record 120.6 million tonnes, while another forecasts 110–120 million tonnes for the 2025–26 crop year.
- Recent stock
- Government wheat stocks stood at 22.2 million tonnes on March 31.
- Weather impact
- Unseasonal rainfall and hailstorms damaged crops in key growing states, according to one report.
- International context
- Renewed attacks on Black Sea commercial vessels and ports have disrupted grain flows and pushed Chicago wheat futures to a two-year high.
Quotes
Directorate General of Foreign Trade notification
Government trade authority issuing the export policy notification
“The export policy of wheat....is revised from prohibited to free with immediate effect”
telegraphindia.com
deccanchronicle.com
Sources
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