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South Asia Supply Chain

India lifts wheat export ban amid 120.657M-tonne record harvest

India has lifted its three-year wheat export ban effective August 24, 2026, following a record 120.657 million tonnes of wheat production in 2025–26 — up 2.712 million tonnes year-on-year. Total food grain output hit 376.563 million tonnes, a 5.3% increase. The move responds to Black Sea supply disruptions, which pushed Chicago wheat futures up 17% in mid-2026. Egypt sourced 82% of its wheat from Russia and Ukraine in early 2026; Indonesia contracted 600,000 tonnes from alternate origins for July–September shipment.

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India lifts wheat export ban amid 120.657M-tonne record harvest

According to supplychaindigital.com, India has lifted its three-year wheat export ban effective August 24, 2026, enabling global buyers to access wheat, durum, flour, maida, semolina, wholemeal atta, and resultant atta — all now reclassified from ‘Prohibited’ to ‘Free’ for export.

Policy reversal after phased easing

India first imposed the wheat export ban in May 2022, citing food security concerns and domestic price spikes linked to Russia-Ukraine war disruptions. The restrictions later expanded to include wheat flour exports. A gradual policy shift began in February 2026, when the government permitted exports of 2.5 million tonnes of wheat and an additional 500,000 tonnes of wheat products, citing improved stock availability.

The final step came on 24 August 2026, when the Directorate General of Foreign Trade (DGFT) issued official notifications confirming the immediate removal of all remaining restrictions. As stated in the regulatory update:

“The export policy of Wheat flour and related products falling under the HS Code 11010000 is revised from ‘Prohibited’ to ‘Free’ with immediate effect.” — Lav Agarwal, Directorate General of Foreign Trade, Indian Government

This decision follows a record-breaking agricultural output: India’s total food grain production reached 376.563 million tonnes in the 2025–26 season, up 5.3% year-on-year — with wheat alone hitting 120.657 million tonnes, an increase of 2.712 million tonnes over the prior season.

Global supply pressure intensifies

The timing coincides with renewed strain on Black Sea grain shipments, as escalating attacks between Russia and Ukraine disrupt commercial vessel operations. Benchmark Chicago wheat futures rose more than 17% between early July and late August 2026, reaching a two-year high.

Ukrainian President Volodymyr Zelenskyy confirmed on the weekend of 22–23 August 2026 that Russia had rejected a truce offer to halt attacks on agricultural commodity vessels transiting the Black Sea.

Import-dependent nations face acute exposure: Egypt — the world’s largest wheat importer — sourced over 82% of its wheat imports from Russia and Ukraine in the first half of 2026. Indonesia, the second-largest importer, contracted approximately 600,000 tonnes from alternative origins for July–September shipment. Algeria, Bangladesh, Jordan, Thailand, Tunisia, and Vietnam also rely heavily on Black Sea supplies.

Strategic implications for supply chain leaders

India’s surplus positions it as a credible alternative origin alongside Bulgaria, Australia, Romania, and Argentina. A pickup in Indian wheat shipments could ease supply pressure across Asia, Africa, and the Middle East — regions most exposed to Black Sea disruption.

The move reintroduces India into global grain sourcing strategies after a three-year absence, meaning buyers who previously diversified away from Black Sea suppliers may now find India competing directly for contracts formerly held by those same alternative origins.

Notably, India’s trade position remains dynamic: while emerging as a major wheat exporter again, the country has also become an importer of certain other agricultural commodities — underscoring that its role in global food trade is evolving rather than fixed.

Source: supplychaindigital.com

Compiled from international media by the SCI.AI editorial team.

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