What's Happening?
The Indian government has authorized the export of 500,000 tonnes of wheat products, including wheat flour, maida, and semolina, under stringent conditions. This decision comes just before the 2026 harvest season, which is anticipated to set a new production
record. Previously, India had restricted wheat exports to stabilize domestic prices. However, recent months saw a relaxation with the export of wheat bran due to its price drop, influenced by the use of distillers' dried grains with solubles (DDGS) in animal feed. The government has outlined that interested exporters must apply through the Directorate General of Foreign Trade (DGFT) website, with applications opening from January 21 to January 31, 2026. The export authorization will be valid for six months, and exporters must submit a landing certificate within 30 days of completing their consignment.
Why It's Important?
This move is significant as it aims to boost the Indian wheat flour industry's presence in international markets, particularly among the Indian diaspora and foreign nationals who appreciate its unique aroma and taste. The decision is expected to provide a sentimental boost to wheat prices ahead of the harvest season, although the impact may be limited due to the strict export conditions. India, a major wheat producer, is also a key exporter to global markets, including Europe, Asia, and Africa. The authorization aligns with India's record wheat production, which reached 117.5 million tonnes in 2025, marking a 3.8% increase from the previous year. The current sowing season has also seen a 1.86% increase in wheat acreage compared to the same period last year.
What's Next?
The government will continue to monitor the export process, inviting applications during the last ten days of each month until the permitted export quantity is exhausted. The Roller Flour Millers’ Federation of India has welcomed the decision, anticipating that it will help recapture overseas markets. The Ministry of Consumer Affairs had previously urged the DGFT to consider opening exports with a quantitative restriction of one million tonnes. As the harvest season approaches, the government will likely assess the impact of these exports on domestic prices and production levels.
