Govt doubles down on wheat exports, clears extra 2.5 million tonnes

The Union government on Monday approved an additional 2.5 million metric tonnes (MT) of wheat shipments as it looks to support farmgate prices and manage rising stocks. Mint reported on 13 April that the government was planning to double the export quota of wheat and wheat products such as wheat flour, suji and maida amid a comfortable production outlook.

The latest approval follows a review of output, procurement levels, and price trends by an empowered group of secretaries that tracks food and supply-related issues. It is one among seven such groups set up by the government to monitor the situation arising out of the crisis triggered by the West Asia war.

“Wheat acreage during the Rabi 2026 season has increased to about 334.17 lakh (33.4 million) hectares, compared to 328.04 lakh (32.8 million) hectares last year. This rise reflects strong farmer confidence in wheat cultivation, supported by the assured minimum support price (MSP) and robust procurement mechanisms, and indicates the likelihood of another strong harvest,” the ministry of consumer affairs, food and public distribution said in a statement.

As per the second advance estimates released on 10 March, wheat production for 2025-26 is pegged at 120 million tonnes, reinforcing expectations of ample supplies. Against this backdrop, the government has been gradually opening the export window. It had earlier cleared 500,000 MT of wheat products exports in January 2026, followed by an additional 500,000 MT of wheat products and 2.5 million MT of wheat in February.

With the latest decision, total permitted exports now stand at 5 million tonnes of wheat and 1 million tonnes of wheat products.

A fine balance

The decision to allow export of an additional 2.5 million tonnes of wheat is expected to enhance market liquidity, facilitate efficient stock management, and prevent distress sales during the peak arrival season, the ministry said. “It will also help stabilise domestic prices and strengthen farmers’ incomes, while ensuring that the country’s food security remains fully safeguarded,” it added.

The government has said it will continue to fine-tune export policy based on evolving supply-demand conditions, balancing farmer interests with consumer price stability.

Binod Anand, a member of the government’s committee on MSP, said, “The increase in wheat acreage alongside the calibrated expansion of export limits suggests the government is trying to strike a balance between supporting farmgate prices and managing surplus stocks. Timely exports can ease pressure during peak arrivals, prevent distress sales, and improve farmer realizations, while still keeping domestic availability comfortable.”