Overview
- The Directorate General of Foreign Trade issued notifications on Monday that reclassified specified HS codes for wheat and wheat-flour products from “Prohibited” to “Free,” removing licence and quota requirements for exporters.
- Officials justified the change by pointing to a record 2025–26 wheat crop of about 120.657 million tonnes and Food Corporation of India stocks near 49–50.5 million tonnes to ensure domestic supply while opening markets.
- Market participants cautioned that shipments may be modest at first because Indian wheat is currently priced higher than many global alternatives and freight costs reduce competitiveness.
- Earlier quota rounds this year authorised roughly 5 million tonnes of wheat and 1 million tonnes of wheat products but produced only small actual exports, a gap traders say reflects the current price and logistics math.
- The move gives millers and farmers new market access and could lift domestic farm prices if exporters seize opportunities, while renewed disruption to Black Sea flows would likely increase demand for Indian cargoes.