The Central Government has officially revised its trade policy regarding key agricultural commodities, moving wheat flour, atta, maida, semolina (rava), wholemeal atta, and resultant atta from the “prohibited” category to the “free” category. According to an official notification issued by the Directorate General of Foreign Trade (DGFT), Indian exporters are now permitted to ship these processed wheat items internationally without quantitative or regulatory restrictions.
This decision marks a major policy shift after years of tight controls designed to stabilize internal grain supplies and cushion domestic markets from external supply shocks.
Background of Export Restrictions
The export curbs were originally introduced in mid-2022 following severe global supply chain disruptions caused by the Russia-Ukraine conflict. As international buyers turned toward Indian wheat to compensate for Black Sea shortfalls, export demand spiked sharply, causing local wheat prices to surge.
To safeguard food security for India’s population of over 1.4 billion people and curb domestic food inflation, the Centre placed a total ban on raw wheat exports on May 13, 2022. By August 2022, the government extended these prohibitions to processed wheat products, including atta, maida, and rava, creating a strict oversight process for any outbound trade.
Factors Driving Policy Deregulation
The government’s strategy to ease trade controls stems primarily from record-breaking agricultural production and robust national grain reserves:
-
Record Foodgrain Production: According to official agricultural estimates, India’s total foodgrain production reached an all-time high of 376.563 million tonnes in 2025–26, representing a significant 5.3% increase over the previous year’s total of 357.732 million tonnes.
-
Higher Wheat Output: Overall wheat production expanded to 120.657 million tonnes—an increase of 2.712 million tonnes compared to the 117.945 million tonnes produced in the preceding agricultural year.
-
Step-by-Step Easing: Prior to complete deregulation, the Centre systematically relaxed restrictions by granting quota-based approvals. Early in the year, the government permitted the targeted export of 25 lakh metric tonnes (LMT) of raw wheat and an additional 5 LMT of processed wheat products as stock levels stabilized.
Market Impact and Economic Implications
The transition to unrestricted exports is expected to benefit Indian millers, food processors, and agricultural traders by providing direct access to lucrative overseas markets, particularly across Asia, the Middle East, and Africa. High global demand for processed flour offers higher profit margins for domestic processing units.
At the same time, policy experts emphasize that domestic food supplies will remain monitored. With elevated bumper harvests recorded across both wheat and rice (which rose to 154.024 million tonnes), the government remains confident that lifting export barriers will not compromise internal availability or trigger inflationary pressure in consumer markets.
