500,000 tonnes of sugar exports allowed on top of an existing 1.5 mt window

Image used only for representation. Photograph: ANI Photo

With wheat production and stocks expected to touch new highs in the coming season, the government on Friday approved exports of 2.5 million tonnes (mt) of wheat and an additional 500,000 tonnes of wheat products.

Simultaneously, the government also permitted exports of 500,000 tonnes of sugar on top of the 1.5 mt allowed earlier.

The ban on wheat exports was lifted after a gap of more than three years while that on products was eased few months back. India had banned exports of wheat on May 13, 2022.

Wheat traders, meanwhile, were apprehensive as to whether any substantial exports could happen now as globally Indian wheat was quoting at around Rs 2,536 per quintal ($280-290 per tonne and assuming an exchange rate of 90.59), while current domestic market price varied between Rs 2,500 and Rs 2,680 per quintal depending on the region where it was being sold. Globally, wheat was selling at $260-265 per tonne.

“Indian wheat is highly overpriced in the international markets as our minimum support price (MSP), which is fixed by the government, is quite high, making Indian wheat costlier than all competitors,” a senior industry official said.

The MSP for 2026-27 marketing season that will start in April is around Rs 2,585 per quintal, while for the current season it is Rs 2,425 per quintal.

Traders said exports can happen only when domestic market prices come down in the next few months under the weight of a surplus harvest.

India’s wheat production in 2026-27 marketing season is projected to cross the previous record of almost 118 million tonnes.

The decision to allow wheat exports comes ahead of the 2026-27 procurement season that is expected to start from April.

As of late January, wheat crops for the 2026-27 season have been sown in around 33.41 million hectares. That is 107 percent of the normal area and 6.13 per cent more than in the corresponding period last year.

Traders said India’s closing wheat stock as of March 31 this year is expected to be around 20 million tonnes, as against a buffer requirement of 7.5 million tonnes, while the government in an official statement said it could be close to 18.2 mt.

As of January 16, India had a 60 mt stockpile of wheat and rice, as against a buffer requirement of 21.4 mt.

“With ample wheat available in the open market and a robust harvest expected soon, the government has taken a calibrated decision to offload excess stocks through exports. This move aims to protect farmers’ interests by ensuring stable wheat prices,” said Navneet Chitlangia, president of Roller Flour Millers’ Federation of India.

The government statement said the decision to allow exports follows a comprehensive review of stock availability and price trends and it would not compromise food security.

The statement added that wheat stocks held by private entities in 2025-26 are estimated at around 7.5 mt, nearly 3.2 mt more than in the corresponding period last year and indicating a comfortable supply position.

In addition, total wheat availability in the central pool with the Food Corporation of India is projected at around 18.2 mt as of April 1, 2026.

Extra sugar exports

Alongside wheat, the Centre has also decided to permit the export of an additional 500,000 mt of sugar during the current Sugar Season 2025-26 to willing sugar mills. Earlier, an export quota of 1.5 million tonnes had been allowed through an order dated November 14, 2025.

According to information furnished by sugar mills, only about 190,000 tonnes of sugar has been exported up to January 31.

Additionally, around 270,000 tonnes has been contracted for export so far, the official statement said.

The newly approved 500,000 tonnes export quota for sugar will be available to willing mills on the condition that at least 70 per cent of their allocated quantity is exported by June 30.