Shipment of the entire wheat export quota is difficult

19-Feb-2026 05:27 PM

New Delhi. The central government has set a wheat export quota of 2.5 million tons for the current year, but given the current domestic and global market conditions, shipment of this entire quota appears unlikely. The quality of the wheat is low and the price is high.

Currently, the minimum support price (MSP) for wheat is ₹2,425 per quintal, while for the new wheat, it will increase by ₹160 to ₹2,585 per quintal. In Rajasthan, an additional bonus of ₹150 per quintal has been announced.

As a result, traders/exporters will have to purchase wheat at a significantly higher price, which will negatively impact its competitiveness in the global export market, especially in distant countries. Some neighboring South Asian countries may see some Indian wheat exports, as this will save importers on transportation costs.

According to rough estimates, the export offer price of wheat purchased at the MSP of Rs 2585 per quintal will have to be kept much higher than the global market price, and its shipment cost could be at least $45 per tonne higher. Indian farmers will not like to sell wheat of normal average quality at a price below the MSP.

The government has also increased the export quota of wheat products from 5 lakh tonnes to 10 lakh tonnes. Millers/processors will also have to purchase wheat from farmers at a higher price, which will naturally increase the export offer price of wheat products. Now everyone's attention is focused on what will be the next step of the government.