Wheat Exports Likely to Reach 5 Million Tons

20-May-2026 05:23 PM

New Delhi: Considering record domestic production and weak market prices, the central government has approved wheat exports of 5 million tons this year, along with permission to ship 1 million tons of value-added wheat products. Initially, the government had allowed exports of 2.5 million tons of wheat and 0.5 million tons of wheat products, but later the export quota for both was doubled.

It is important to note that wheat and its products are still on the restricted list, so exporters can only ship up to the allotted quota.

Although wholesale wheat prices are at or slightly below the government’s minimum support price, Indian wheat is still not considered competitive in the global export market because wheat from major suppliers like Russia and Ukraine is being offered at relatively lower prices. However, Indian wheat will be available at relatively lower prices for neighboring countries like Bangladesh and Sri Lanka, as shipping costs are not high.

The central government estimates domestic wheat production at 120.2 million tons this year, while industry and trade bodies estimate it at 110.6 million tons—a record level. Government wheat procurement has been the highest in four years, and the central pool stock has reached a very high level. Therefore, there is no threat to national food security. The government intends to keep wheat prices high to ensure attractive income for farmers.

Meanwhile, wheat production in regions like the United States, Canada, Australia, and Argentina is expected to decline. As a result, global wheat prices may improve slightly after July 2026, providing some relief to Indian exporters.