Wheat Product Exports to Provide Relief to the Industry

19-Jan-2026 09:04 PM

New Delhi. Better late than never, the Indian government has finally granted permission to millers and processors to export 500,000 tonnes of wheat products, including flour, semolina, and other products. India is the world's second-largest producer of wheat.

The commencement of exports of value-added products is expected to improve wheat prices in wholesale markets and increase the sale of government wheat under the Open Market Sale Scheme (OMSS).

It is noteworthy that due to a decline in domestic production and rising market prices, the government had banned commercial exports of wheat in May 2022 and subsequently also stopped the shipment of its value-added products.

Prior to this, exports of wheat and its products from India had increased rapidly, reaching new record levels. 

Therefore, when production declined sharply, a new phase of price increases began, exacerbating the difficulties faced by the common people.

High market prices led to a decrease in government procurement of wheat for the central pool, and for the first time in a long time, the quantity fell below 20 million tonnes. Due to low government stocks, the wheat quota under the Public Distribution System (PDS) was reduced in about 10 states.

Later, the level of government wheat procurement improved somewhat, reaching 26.2 million tonnes, 26.6 million tonnes, and 30.2 million tonnes respectively, and domestic production also increased steadily.

Considering this, the domestic industry urged the government to grant permission for the export of 1 million tonnes of wheat products. After a thorough study and analysis of the entire situation, the government finally decided to allow the export of 500,000 tonnes of wheat products.

Indian wheat products can be exported to neighboring countries as well as to markets in the Middle East and West Asia.