sugar export
The Government of India has approved the export of 25 lakh metric tonnes of wheat and additional 5 lakh tonnes of sugar. As the world’s second largest producer, this decision of India has been taken with the aim of providing better prices to the farmers and keeping the domestic market balanced. The government said that this decision has been taken after reviewing the existing stock, prices and supply situation.
Partial permission has already been given
Last month, the government had allowed export of 5 lakh tonnes of wheat flour and other wheat products. Earlier in November, export of 15 lakh tonnes of sugar was approved, which was for the new season starting from October 1. The government believes that farmers will get better returns from exports and balance will be maintained in the market.
High prices can become a challenge
However, traders say that Indian wheat prices are higher than the international market. Indian wheat is available at around $280 per tonne (FOB), while Argentinian wheat is available at around $200 per tonne. Buying countries like Bangladesh are buying better quality wheat at around $260 per tonne (CFR). In such a situation, it may be challenging to meet the set export target.
Confidence increased due to record production
India imposed a ban on wheat exports in 2022, which was extended to 2023 and 2024 due to extreme heat. At that time there was crop damage and domestic prices had reached record levels. However, the weather remained favorable in 2025, with better seeds and two consecutive good monsoons leading to a major improvement in production. In 2025, the country produced a record 11.79 crore metric tons of wheat. Experts believe that this time due to good crop and adequate reserves, the decision to export can prove to be positive for both the farmers and the market.
