India Resumes Wheat Exports, Expands Sugar Quota by Amit Gupta, Kedia Advisory
India Resumes Wheat Exports, Expands Sugar Quota
India has approved the export of 2.5 million tonnes of wheat, marking the first major relaxation since the 2022 ban, along with an additional 0.5 mt of wheat products and 0.5 mt of sugar. The move aims to stabilise domestic prices and support farmers amid softening mandi rates due to fresh crop arrivals. Wheat prices have slipped below the MSP in some regions, while stocks remain comfortable. Sugar exports will be limited to “willing mills” under strict conditions. Despite the policy shift, global price competitiveness remains a challenge, particularly for wheat and sugar shipments.
Key Highlights
* Government allows 2.5 mt wheat exports after nearly four years.
* Additional 0.5 mt wheat products and 0.5 mt sugar approved.
* Wheat mandi prices fall below MSP amid bumper arrivals.
* Wheat stocks and acreage higher year-on-year, easing supply concerns.
* Sugar exports restricted to willing mills under pro-rata quota system.
India has reopened wheat exports after nearly four years, approving shipments of 2.5 million tonnes (mt) in a move aimed at stabilising domestic prices and ensuring remunerative returns to farmers. The government has also permitted an additional 0.5 mt of wheat products and 0.5 mt of sugar exports, over and above previously allowed quantities.
The decision comes amid softening wheat prices during peak arrivals of the new crop. According to official data, the all-India average mandi price has declined to ?2,527 per quintal in early February, below the minimum support price (MSP) of ?2,585. States such as Gujarat and Madhya Pradesh have seen sharper monthly corrections due to increased arrivals.
The government highlighted comfortable stock levels, with private trade holding around 7.5 mt—3.2 mt higher than last year. Wheat stocks with the Food Corporation of India (FCI) are projected at 18.2 mt by April 1, 2026. Additionally, wheat acreage in the ongoing Rabi season has expanded to 334.17 lakh hectares, raising expectations of a record 119 mt production.
However, export competitiveness remains a concern. Indian wheat is currently priced above global supplies from Russia and Ukraine, limiting demand to select markets like Nepal.
On sugar, the additional 0.5 mt export quota will be allocated only to “willing mills” on a pro-rata basis, subject to strict timelines. The government has continued to regulate sugar exports through permits, balancing surplus management with domestic price stability.
While global sugar prices remain subdued, the policy shift signals a calibrated approach to managing domestic supplies without compromising food security.
With rising output and comfortable stocks, India’s calibrated export reopening seeks to stabilise farm incomes while carefully managing global competitiveness and domestic food security priorities.
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