Finally, DGFT Lifts Ban on Wheat and Aata,
Move Late as Record Harvest Came in April Itself
Ø Hardening World Price Makes
Export via FCI Stock Viable
Ø Stop-go Export Policy
Bad for Exports and Farmer
India
Lifts Wheat Export Ban as Black Sea Disruptions Tighten Global Supplies
·
Export ban scrapped: India
has lifted its long-standing ban on wheat exports, allowing shipments of wheat,
including durum wheat, wheat flour and other wheat products.
·
DGFT notification: The
Directorate General of Foreign Trade issued notifications permitting exports on
Monday.
·
Earlier relaxation: In
February 2026, the government had already allowed limited wheat exports.
·
Global supply impact: The move
could increase supplies for wheat-importing countries across Asia, Africa
and West Asia, where availability has come under pressure.
·
Black Sea disruption:
Intensifying Russia-Ukraine attacks on commercial vessels and ports are
disrupting grain flows from major exporters, contributing to higher global
wheat prices.
·
Prices: Chicago wheat futures have risen
to a two-year high amid concerns over supplies.
·
Record domestic production: India’s
latest wheat harvest reached a record 120.6 million tonnes,
strengthening the case for allowing exports.
·
Policy background: India
had largely prohibited wheat exports since 2022, following Russia’s
invasion of Ukraine, citing domestic food-security concerns.
The government has permitted exports of
wheat, including the durum variety, as well as flour and other products
India, the
world’s second-biggest wheat producer, has scrapped a years-long ban on exports
of the grain, a move that could ease global supplies that are under strain from
escalating attacks between Russia and Ukraine.
The government
has permitted exports of wheat, including the durum variety, as well as flour
and other products, according to notifications issued on Monday by the
Directorate General of Foreign Trade. In February, the government had permitted
limited shipments of the grain.
India’s
outbound wheat shipments could ease supply pressures in import-dependent
countries across Asia, Africa and the West Asia at a time when a pickup in
attacks on commercial vessels and ports in the Black Sea has disrupted grain
flows from some of the world’s top exporters. The conflict has sent Chicago
wheat futures to a two-year high.
India’s last
wheat harvest climbed to an all-time high of 120.6 million tons. However, the
government has largely prohibited wheat exports since 2022 — the year Russia’s
invasion of Ukraine began — citing food security concerns.
[DGFT Notification No. 35/2026-27 dated 24
August, 2026]
Effect
of this Notification: The export policy of Wheat under the
above-mentioned HS Codes is revised from 'Prohibited' to 'Free' with immediate
effect.
Subject: Amendment in the
Export Policy of Wheat.
S.O.
(E).- In exercise of powers conferred by Section 5 read
with Section 3 of the Foreign Trade (Development & Regulation) Act, 1992 (No.
22 of 1992), as amended, read with Para 1.02 and 2.01 of the Foreign Trade Policy,
2023, the Central Government hereby makes the following amendment in the Export
Policy of Wheat under Schedule 2 of the ITC (HS) Export Policy:
|
ITC
(HS) Codes |
Description |
Existing
Export policy |
Revised
Export Policy |
|
10011900 |
Durum
Wheat: -- Other |
Prohibited |
Free |
|
10019910 |
Wheat |
Prohibited |
Free |
2. The
export policy of the above-mentioned products/items shall accordingly be 'Free'
with immediate effect.
(Issued
from File No. 01/91/180/032/AM22/EC/Pt -E-31336)