Emphasis on the need for a long-term policy for the wheat trade
17-Feb-2026 04:55 PM
New Delhi. The Central Government recently approved the commercial export of 2.5 million tons of wheat and also increased the export quota for wheat products by 500,000 tons to 1 million tons. This is expected to provide some relief to the industry and trade sector.
Navneet Chitlangia, President of the Roller Flour Millers Federation of India and a renowned wheat trade expert, welcomed the government's export decision and stated that a stable, long-term, and positive policy formulation and implementation is needed on various fronts to facilitate the industry and trade sector's strategy development.
The Federation President stated that this year, wheat sowing area has increased by 2 percent, and with the exception of a few limited areas, crop conditions are normal or satisfactory in all major producing regions. Consequently, a robust domestic wheat production is expected this year, similar to last year.
The Food Corporation of India (FCI), the central pool, has a large stock of wheat, and government data indicates that the private sector also has approximately 3 million tons more wheat than last year. Markets are receiving adequate supplies of this crucial food grain, and prices have remained moderate.
According to Navneet Chitlangia, the storage limit on wheat has expired and is unlikely to be reimposed in the near future. The government believes it will have a surplus stock of 18.2 million tons when the new marketing season for wheat procurement begins on April 1, 2026. The minimum support price for wheat has been increased to ₹2,585 per quintal for the 2025-26 Rabi season. At this high price, it will be difficult for the industry and trade sector to trade in wheat.
Regarding the parity of wheat and its value-added products for export, the Federation's president stated that exports to neighboring countries like Bangladesh and Nepal may be somewhat impacted, but exports to other markets, including the Middle East, may take some time. In the coming months, when there is a strong supply of new wheat, a drop in prices by 250-300 rupees per quintal relative to the MSP may encourage private sector purchases.