India has resumed wheat exports for the first time in four years, supported by improved domestic availability and favourable global trade conditions, though elevated prices may limit large-scale demand, according to trade sources.
Conglomerate ITC Limited has initiated shipment of around 22,000 metric tonnes of wheat from Kandla port to the United Arab Emirates, marking the first such export since restrictions were imposed in 2022.
India, the world’s second-largest wheat producer after China, had banned exports in 2022 following extreme heat that damaged crops and reduced domestic stocks. The curbs continued through 2023 and 2024 as the government prioritized food security and price stability.
However, a strong harvest last year has helped replenish reserves, enabling New Delhi to cautiously reopen exports. The government has so far permitted shipments of up to 5 million tonnes in phases this year.
Despite the policy shift, Indian wheat remains relatively expensive in global markets. While recent geopolitical tensions, including the Iran conflict of 2026, have driven up freight costs and created short-term opportunities for Indian exporters, domestic price increases have made shipments less competitive compared to supplies from Australia and the Black Sea region.
The UAE-bound shipment is understood to have been contracted at around $275 per tonne (free on board). However, with competing global supplies priced more competitively on a delivered basis, Indian wheat is estimated to be at least $20 per tonne costlier in international markets.
As a result, demand is expected to remain limited to buyers with immediate supply requirements, particularly those seeking quick shipments within a 30–45 day window. Traders indicate that countries with adequate inventories from established exporters such as Australia, Argentina, and the Black Sea region are unlikely to shift to Indian wheat at current price levels.
Industry observers note that while India’s return to the export market signals improved domestic supply conditions, sustained global competitiveness will depend on price alignment and evolving freight dynamics.