The Indian government is reportedly considering lifting the ban on wheat exports, a move that could have significant implications for both domestic and international markets. This consideration comes as the Food Corporation of India (FCI) holds wheat stocks almost double the required amount, suggesting a comfortable supply situation within the country.

India imposed a ban on wheat exports in May 2022 in response to a heatwave that affected domestic production, leading to concerns about rising prices and food security. The ban aimed to control domestic prices and ensure sufficient supplies for the country's population. However, this decision also had an impact on global wheat markets, as India is one of the world's major wheat producers.

Several factors are likely contributing to the government's reevaluation of the export ban. India's wheat production is estimated at a record 117.5 million tonnes in the 2024-25 crop year. Areas sown to wheat have touched a record 33.41 million hectares in the 2025-26 rabi season, buoyed by good weather, the agriculture ministry data showed. Favorable weather conditions and increased sowing areas have led to expectations of a bumper crop in the upcoming season. Moreover, government procurement has been strong, with over 29 million tonnes of wheat already procured this year and expectations of reaching 32-32.5 million tonnes. These factors have contributed to a comfortable stock position with the FCI.

The potential lifting of the export ban could have several positive outcomes. It would allow India to capitalize on its surplus wheat production and boost its agricultural exports. Re-entering the global market could help India regain its traditional markets and improve its position as a reliable supplier. Furthermore, it could provide relief to the wheat milling industry, which has been urging the government to ease export curbs.

However, the government must also consider potential challenges. Maintaining stable domestic prices will be crucial to avoid inflationary pressures. The impact on domestic food security needs careful assessment to ensure sufficient supplies for the country's needs. Global market conditions and demand will also play a role in determining the extent to which India can effectively export its surplus wheat.

In a related development, the government has already permitted the export of 500,000 tonnes of wheat flour and related products, signaling a partial easing of the ban. This decision, made after a gap of over three years, indicates a willingness to gradually re-enter the global wheat market. The Directorate General of Foreign Trade (DGFT) has issued a notification allowing these exports, with applicants required to seek permission and file applications.

Any decision regarding wheat exports will likely involve consultations with various ministries and stakeholders to ensure a balanced approach that considers both domestic and international factors. The government's top priority remains ensuring the country's food security while also exploring opportunities to benefit from its agricultural production.