News Desk
India has resumed wheat exports for the first time in four years, with traders confirming that a bumper harvest and shifting global market conditions have made Indian grain competitive again for buyers across Asia and the Middle East.
According to trade sources cited by Reuters, Indian suppliers have begun loading shipments at Kandla port in Gujarat, marking a significant policy and market turnaround after New Delhi imposed a wheat export ban in 2022 to protect domestic supplies.
One of India’s largest consumer‑goods companies, ITC, has started loading 22,000 tonnes of wheat bound for the United Arab Emirates, the sources said.
India — the world’s second‑largest wheat producer after China — allowed limited exports earlier this year after officials assessed that the 2024–25 crop would be exceptionally strong, reversing the shortages caused by extreme heat in 2022 and 2023.
Those back‑to‑back heatwaves had reduced output, depleted government stocks, and pushed domestic prices to record highs, prompting fears that India might even need to import wheat for the first time since 2017.
This year’s favourable weather and expanded acreage have eased those concerns. Government officials say the improved harvest has stabilised domestic supply and created room for controlled exports.
Before the Iran war, Indian wheat struggled to compete internationally due to higher prices compared with Australia, Argentina, and Black Sea exporters.
But the conflict’s impact on shipping routes — especially the closure of the Strait of Hormuz and a sharp rise in freight costs — has changed the equation.
Importers seeking immediate delivery are now turning to India, where proximity and shorter transit times offer a clear advantage.
Shipping delays in the Middle East and rising insurance premiums have made Indian wheat a practical option for buyers needing urgent replenishment.
Reuters noted that India is unlikely to see a major export surge because its wheat remains around USD 20 per tonne more expensive than supplies from Australia or the Black Sea region, even after including insurance and freight.
However, traders say two types of buyers are emerging:
- Importers needing fast shipments — choosing Indian wheat despite the price premium.
- Importers with comfortable stocks — waiting for cheaper cargoes from Australia, Argentina, or the Black Sea.
For New Delhi, the resumption of wheat exports is a positive signal:
- It reflects strong agricultural output after two difficult years.
- It reinforces India’s role as a reliable supplier during global disruptions.
- It demonstrates the country’s ability to stabilise domestic markets while supporting partners abroad.
Officials say export volumes will be calibrated to ensure domestic price stability, but the return of Indian wheat to global markets marks a notable shift in the region’s food‑security landscape.
