India Unlocks Wheat Flour Exports After 3-Year Ban

AGRICULTURE

Overview

India has permitted the export of 5 lakh tonnes of wheat flour and related products, ending a three-year prohibition. This move by the Directorate General of Foreign Trade (DGFT) targets manufacturers, export processing units, and merchant exporters with specific licenses. The allowance aims to boost international trade for Indian wheat products while requiring explicit permission for shipments.

Policy Shift

The decision to permit exports follows a three-year hiatus since India banned wheat shipments in 2022 due to rising domestic prices and supply concerns. The Directorate General of Foreign Trade (DGFT) specified that while the general export of wheat flour remains prohibited, a quota of 5 lakh metric tonnes (LMT) is now allowed.

Export Mechanism

Applicants, primarily manufacturer exporters with valid import-export codes (IEC) and FSSAI licenses, must seek explicit permission from the DGFT. The application window opens from January 21 to January 31, 2026, for the initial set of shipments. Subsequent applications will be invited during the last ten days of each month until the quota is exhausted. Export authorisations will be valid for six months.

Eligibility Criteria

Besides flour mills, eligible entities include export processing units, special economic zones, and merchant exporters who have agreements with designated flour mills. A special Exim Facilitation Committee will decide on the allocation of export quantities. This move signals a shift in policy, balancing domestic food security with opportunities for international trade in value-added wheat products. Wheat, a primary rabi crop, is crucial for India's agricultural output.

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