Wheat Export Policy Update
The Indian government has announced a significant change in its wheat export policy.
Export Allowance
- The Centre has permitted the export of 25 Lakh Metric Tonnes (LMT) of wheat.
- An additional 5 LMT of wheat products are also allowed for export.
Objectives and Rationale
- This move is aimed at stabilizing domestic markets and ensuring remunerative returns to producers.
- The decision is described as farmer-centric and is part of a broader strategy to protect farmers’ interests.
- The allowance comes after a comprehensive assessment of current availability and price scenarios.
Market and Stock Situation
- The decision to allow exports is influenced by lower domestic prices and better availability.
- Wheat stock availability with private entities for 2025-26 is approximately 75 LMT, marking a substantial increase of 32 LMT compared to the previous year.
- Projected wheat availability in the central pool with the Food Corporation of India (FCI) by April 1, 2026, is around 182 LMT.
Impact on Domestic Food Security
- The Ministry assures that export permissions will not compromise domestic food security requirements.
Historical Context
- India had previously banned all wheat shipments on May 13, 2022, changing the export status from "free" to "prohibited".
A formal notification regarding this policy change is expected from the Directorate General of Foreign Trade.
