India allows some exports of wheat products after three-year ban

India’s decision to restart some exports, which were halted in May 2022, coincides with the country’s trade talks with the US.

India approved the export of some wheat-based goods, easing restrictions that have been in place for more than three years, on expectations for a strong harvest that will likely boost domestic supplies.

The world’s second-biggest producer of the grain greenlit the export of 500,000 tons of wheat flour and other related products such as semolina, according to a notification by the Directorate General of Foreign Trade dated Jan. 16. So far, it’s a one-off quota, and measures barring wheat shipments are still in effect.

India’s decision to restart some exports, which were halted in May 2022, coincides with the country’s trade talks with the US. The two sides are trying to ease tensions, with Washington pushing New Delhi to open up its agricultural sector and provide greater market access for American farm goods.

The best monsoon in five years is allowing India to loosen its curbs, albeit temporarily, while also heeding calls from the local industry to take advantage of overseas demand. Bloomberg News reported in November that the country was considering resuming exports of wheat products.

India’s partial return may improve global supply and offer relief to import-reliant nations across Asia, Africa, and the Middle East by easing prices.