In view of the bumper production in the domestic market and the surplus stock filled in warehouses, the Central Government has taken a big decision. The government on Friday approved the export of 25 lakh tonnes of wheat and 5 lakh tonnes of sugar. The direct objective of this decision is to bring stability in domestic prices and to provide farmers the right price for their produce before the arrival of the new Rabi season crop.
According to the statement issued by the Food Ministry, apart from wheat, export of 5 lakh tonnes of wheat products has also been allowed. This step has been taken at a time when the grain stocks in the country, both at private and government levels, are in a comfortable position.
Wheat: warehouse full, export route open
The biggest reason behind this decision of the government is the huge stock of wheat. If we look at the figures, the situation becomes clear:
Stock held by private sector: Private companies and traders have stock of about 75 lakh tonnes of wheat for the financial year 2025-26. This is about 32 lakh tonnes more than the same period last year.
FCI Status: Food Corporation of India (FCI) is estimated to have about 182 lakh tonnes of wheat available in the central pool by April 1, 2026. This figure is enough to ensure that allowing exports will not affect the food security of the country.
Increase in sowing: The area under sowing of wheat in Rabi season 2026 has increased to 334.17 lakh hectares, which was 328.04 lakh hectares last year. This shows that farmers have sown heavily with confidence in MSP and government procurement and this time also a bumper yield is expected.
New relief to sugar mills
Along with wheat, the government has also given relief to the sugar industry. ‘Interested’ sugar mills have been allowed to export additional 5 lakh tonnes of sugar for the sugar season 2025-26.
Previous Track Record: Earlier on November 14, 2025, the government had allowed export of 15 lakh tonnes of sugar. However, according to the information given by the mills, only 1.97 lakh tonnes of sugar has been exported till January 31, 2026, while deals for about 2.72 lakh tonnes have been contracted.
Strict conditions: Additional quota of five lakh tonnes will be given only to those mills who express willingness for it. The condition is that it will be mandatory to export at least 70% of the allotted quota by June 30, 2026. The allotment will be on pro-rata basis and the mills will have to give their consent within 15 days of the issue of the order. The most important thing is that this export quota cannot be exchanged with any other mill.
This step of the government has been taken to improve liquidity in the market and to prevent ‘distress sale’ (selling at throwaway prices) during the peak season. Opening of exports will support prices in the domestic market, which will protect farmers’ income.
