# Wheat Export Policy Sees Major Change, but Price Competitiveness Remains a Challenge: Rajesh Jain Pahadia
24-Aug-2026 06:37 PM
India has moved wheat, wheat flour and related products from the ‘Prohibited’ to the ‘Free’ export category. The move gives exporters greater freedom to sell wheat and wheat products in overseas markets.
However, despite the policy change, the competitiveness of Indian wheat in international markets remains a major challenge. The current domestic wholesale price is INR 27,750 per tonne. At an exchange rate of INR 95.60 per dollar, this translates to around $290 per tonne. After adding transportation, port handling and other export costs, the estimated FOB price of Indian wheat could reach $325-340 per tonne.
In comparison, Russian wheat is priced at around $216-217 per tonne, Argentine wheat at $257 per tonne and Australian APW at around $291 per tonne. This makes it difficult for India to compete with low-cost suppliers such as Russia in large international tenders.
For India, markets such as Bangladesh, Nepal and Bhutan could be more practical destinations. Shorter distances and lower freight costs in these markets could partly offset the higher price of Indian wheat.
According to the analysis, freight savings of around $15-30 per tonne could help make Indian wheat more competitive in regional markets.
Exports of wheat flour, maida and related products have also been liberalised. However, milling, packaging, handling and container freight add to the overall cost. Indian flour export parity is estimated at $380-420 per tonne C&F. Therefore, instead of large-scale exports, selected markets in the GCC and Southeast Asia could offer better opportunities.
The removal of export restrictions opens new opportunities for India in the wheat trade, but a sharp increase in exports is unlikely immediately. India's actual competitiveness will depend on domestic wheat prices, international prices and freight costs.
Therefore, in the coming period, India is likely to have greater opportunities in nearby regional markets rather than competing directly in large global tenders.