Government decision on wheat exports boosts market sentiment
14-Feb-2026 12:24 PM
New Delhi. The central government has permitted the commercial export of 2.5 million tons of whole wheat and has also decided to increase the export quota for wheat products from 500,000 tons to 1 million tons.
This is expected to have a positive impact on prices in the domestic market. It is worth noting that the government has already withdrawn the order restricting storage limits on wheat, reducing pressure on traders and stockists.
Due to abundant supply and availability in the international market, wheat prices are remaining subdued, which may pose some difficulties for Indian traders in exporting wheat. However, a positive point for India is that all its neighboring countries—Bangladesh, Nepal, Bhutan, Sri Lanka, Maldives, Afghanistan, and Myanmar—are currently sourcing wheat from other supplier countries, which is more expensive.
These countries may now show interest in purchasing Indian wheat. Some wheat exports from India to the Gulf countries may also be possible. Similar trends will prevail for wheat product exports.
A surplus stock of approximately 18.2 million tonnes of wheat is expected to be present in the central pool on April 1, 2026, while government procurement of new wheat will also commence at the same time.
By allowing wheat exports and removing stock limits, the government aims to ensure that stockists and large producers are able to quickly clear their stocks, accelerate wheat procurement by millers and processors, and boost domestic market prices, helping the government increase its wheat sales.
The next wheat harvest is expected to be robust again. The government observed that large wheat purchases by private firms during the 2025 Rabi marketing season kept wholesale market prices largely stable. This policy may be adopted in 2026 as well.
Although the approval for wheat exports has been granted quite late, it is expected to have a positive psychological impact on the domestic market. Stockists' depleted stocks will encourage them to purchase the next batch.