India Allows Wheat and Sugar Exports Amid Farmer Protests Over Trade Deal with the US
The Indian government has decided to allow the export of 2.5 million tons of wheat, as well as an additional 500,000 tons of wheat products and sugar. This move is aimed at supporting local farmers who are protesting against a potential trade deal with the US, fearing negative impacts on their interests. Although the trade minister stated that the country has already implemented necessary protective mechanisms for farmers, protests continue.
This is reported by AgroReview
The Aim of Exports — Stabilizing the Market and Protecting Farmers’ Interests
The federal government of India noted that the primary goal of allowing exports is to stabilize the situation in the domestic market and ensure farmers receive a decent income, considering the current state of prices and supply. In January, the Indian government already opened the export of 500,000 tons of wheat flour and other wheat products, and in November, the export of 1.5 million tons of sugar was permitted for the season that started on October 1.
Despite the permission for exports, market experts point out that it will be challenging to realize these volumes due to high prices for Indian products. For instance, Indian wheat is priced at around $280 per ton (FOB) in the global market, while Argentine wheat is approximately $200. One of the main importing countries, Bangladesh, purchases higher quality wheat at $260 per ton (C&F).
The Situation in the Wheat and Sugar Markets in India
In 2022, India banned wheat exports due to drought and decreased yields. Restrictions continued into 2023–2024, leading to a historic rise in domestic prices and speculation about possible wheat imports for the first time since 2017. However, the situation improved last year: thanks to favorable weather conditions, the use of high-yield seeds, and sufficient moisture after two monsoon seasons, the country harvested a record 117.9 million tons of wheat in 2025.
Regarding sugar exports, of the allowed 1.5 million tons, about 197,000 tons had already been shipped by the end of January, with another 272,000 tons under contract. An additional quota of 500,000 tons will be granted to those sugar mills that fulfill at least 70% of the previously allocated volumes by June 30.
According to Deepak Ballani, the CEO of the Indian Sugar & Bio-Energy Manufacturers Association, weak global prices complicate exports even with quotas in place, and the additional 500,000-ton expansion of the export quota will not significantly impact the industry’s prospects, although it will slightly ease pressure on the domestic market.
Currently, Indian sugar is offered in the global market at approximately $445 per ton (FOB), which is $50 above the estimated level of London futures.