Wheat
Export Ban to Continue, India Tells WTO
The government expects wheat production to rise 2% to a
record 115.4 million tonnes in the 2024-25 rabi season, mainly on account of
higher acreage.
·
Temporary
ban on wheat exports, first imposed in May 2022, remains in place due to
ongoing volatility in global wheat prices.
·
India
has kept a window open for humanitarian or diplomatic exceptions, stating that
wheat exports may be permitted to countries upon specific
government-to-government requests to meet their food security needs.
[ABS News Service/14.06.2025]
Despite a bumper wheat harvest, India has formally notified
the World Trade Organization (WTO) that it will not lift restrictions on wheat
exports, citing food security concerns for its own population as well as
vulnerable and neighbouring countries.
In a submission to the WTO’s Committee on Agriculture on
Tuesday. circulated on Wednesday, India said its temporary ban on wheat
exports, first imposed in May 2022, remains in place due to ongoing volatility
in global wheat prices and the need to ensure domestic availability.
India said it has "imposed a temporary ban on wheat
exports by changing the policy from ‘free’ to ‘prohibited’, in line with
Article XI:2(a) of the GATT 1994 and Article 12.1 of the Agreement on
Agriculture.”
However, India has kept a window open for humanitarian or
diplomatic exceptions, stating that wheat exports may be permitted to countries
upon specific government-to-government requests to meet their food security
needs.
The government expects wheat production to rise 2% to a
record 115.4 million tonnes (mt) in the 2024-25 rabi
season, mainly on account of higher acreage.
The measure, effective from 13 May 2022, was introduced in
response to a combination of geopolitical tensions, climate-induced production
concerns, and rising global demand that led to a sharp escalation in wheat
prices globally.
India is among the top producers of wheat globally but is
not a major exporter. Nevertheless, the country’s decision to curb outbound
shipments drew criticism from some WTO members when first announced,
particularly amid global shortages triggered by the Russia-Ukraine war, which
disrupted supplies from the Black Sea region.
In FY23, India exported 4.7 mt of
wheat, valued at $1.52 billion. However, exports dropped significantly to 0.19 mt in FY24 and further to 2,749 tonnes during
April-February 2024-25, according to commerce ministry data.
Since the ban, only limited quantities have been allowed
through diplomatic channels and on humanitarian grounds.
The notification did not provide a specific end-date for
the measure, only noting that it would remain until the conditions
necessitating it no longer persist.
Despite meeting procurement targets, the government is
proceeding cautiously to avoid sparking retail food inflation, which is
currently at its lowest, ahead of assembly polls.
Before the ban, India exported wheat and wheat products
mainly to South Asia, West Asia and Africa. Top buyers included Bangladesh,
Indonesia, the UAE, Sri Lanka, Kenya, Djibouti, and Somalia. In addition,
Nepal, Bhutan, and Gulf nations like Oman and Qatar were key importers of
processed wheat products.