India Restarts Wheat Exports After Four-Year Gap, but High Prices May Cap Demand
India has resumed wheat exports for the first time in four years as improved harvests and higher global freight costs create limited export opportunities. Trade sources said Indian trader ITC has begun loading 22,000 metric tons of wheat from Kandla port for shipment to the United Arab Emirates, marking the first such deal since the export ban was lifted.
The government had earlier permitted exports of up to 5 million tons of wheat in phases after banning overseas sales in 2022 due to production shortfalls and rising domestic prices. Following better crop output in 2024, stock levels recovered, giving authorities confidence to reopen exports. However, domestic prices have recently risen again due to crop damage, reducing competitiveness in global markets.
Despite renewed shipments, Indian wheat remains costlier than supplies from Australia and the Black Sea region, limiting demand mainly to buyers with urgent short-term needs. At around $275 per ton, Indian wheat is still less competitive than alternatives priced closer to $290–$300 per ton including freight, meaning only immediate supply gaps are likely to drive purchases.
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