India for the first time in four years sold wheat abroad

India has resumed wheat exports for the first time in four years, taking advantage of improved market conditions. Ample domestic stocks, rising global prices, and higher freight rates have opened a window for traders to ship limited volumes to buyers in Asia and the Middle East.

The first shipment is already underway, as Indian conglomerate ITC Limited has begun loading about 22,000 tonnes of wheat at the western port of Kandla for delivery to the United Arab Emirates. This marks the first confirmed export deal since the country imposed restrictions in 2022.

India, the world’s second-largest wheat producer after China, had banned exports following a heatwave that reduced output and drove domestic prices to record highs. The government extended these curbs through 2023 and 2024 amid concerns over tight supplies and the potential need for imports.

A strong harvest in 2025 helped rebuild reserves and eased supply concerns, allowing the government led by Narendra Modi to lift restrictions and permit exports again. Authorities have approved shipments of up to 5 million tonnes this year in two phases.

Despite the policy shift, export activity remained limited due to uncompetitive pricing. Indian wheat has been more expensive than supplies from Australia and the Black Sea region, discouraging traders from actively signing contracts.

However, rising freight costs linked to geopolitical tensions have prompted some buyers with urgent needs to turn to India. The UAE deal was reportedly signed at around $275 per tonne FOB, making it viable for short-term supply gaps.

Still, market participants do not expect a sharp increase in exports. Domestic prices in India have recently risen again due to crop damage, keeping its wheat less competitive globally. As a result, Indian wheat is likely to remain a niche option, mainly for buyers requiring quick shipments within 30–45 days.

https://ukragroconsult.com