India resumes wheat exports but high prices may curb demand

Monday 04 May 2026 - 08:30

India has restarted wheat exports after a four-year pause, signaling a shift in its agricultural trade policy. The decision follows improved harvests and the rebuilding of national reserves, allowing authorities to re-enter global markets cautiously.

As the world’s second-largest wheat producer after China, India plays a crucial role in global food supply. The government had previously imposed export restrictions in 2022 to protect domestic availability and control rising prices.

First shipments target regional markets

Initial export shipments are already underway, with companies such as ITC Limited sending wheat cargoes to nearby markets. Early deliveries are mainly directed toward countries in Asia and the Middle East, where demand for immediate supply remains strong.

These shipments mark a cautious return to international trade, with volumes expected to remain limited in the early stages.

High prices reduce competitiveness

Despite the resumption of exports, Indian wheat faces a significant challenge: its relatively high price compared to competing suppliers. This could limit demand, especially among price-sensitive importers.

Experts suggest that only buyers in urgent need of supplies are likely to turn to India, while others may continue sourcing from lower-cost producers in global markets.

From shortages to recovery

India’s export ban was initially introduced after extreme weather conditions damaged crops and reduced stockpiles, pushing domestic prices to record levels. Concerns at the time even raised the possibility of imports.

However, favorable weather conditions in the most recent season have led to a strong harvest, enabling the government to replenish reserves and cautiously reopen exports.

A careful return to global markets

While India’s return to wheat exports reflects improved agricultural conditions, uncertainties remain. Market dynamics, including global prices and logistical costs, will play a key role in determining the scale and sustainability of exports.

For now, India appears to be taking a measured approach, balancing domestic food security with opportunities in international trade.