"India lifts wheat export ban as record production depresses farm prices"
Buffer Stock
Government-held grain reserve used to stabilise prices and ensure food security during shortages.
DGFT
Directorate General of Foreign Trade; administers India's export-import policy under the Foreign Trade Act.
India's agricultural trade policy has long been pulled in two directions. On one side is the interest of farmers, who benefit from higher prices when exports are allowed. On the other side is the interest of consumers, who need affordable food. The government manages this tension through a set of instruments: the Minimum Support Price (MSP), procurement by the Food Corporation of India (FCI), buffer stock norms, and export-import controls administered by the Directorate General of Foreign Trade (DGFT) under the Foreign Trade (Development and Regulation) Act, 1992.
Wheat is India's second most important cereal crop after rice. It is a rabi crop, grown primarily in the Indo-Gangetic Plain states of Uttar Pradesh, Punjab, Haryana, Madhya Pradesh, and Rajasthan. India is the world's second-largest wheat producer. The Green Revolution of the 1960s and 1970s transformed India from a food-deficit country into a surplus producer. Since then, the government has used buffer stocks and the Public Distribution System (PDS) to manage supply and keep consumer prices stable. Export policy has been used as a residual lever, opened when surpluses are large and closed when domestic prices rise.
The Foreign Trade Policy classifies goods as 'free', 'restricted', or 'prohibited' for export. A shift from 'prohibited' to 'free' removes all licensing requirements and allows any registered exporter to ship the commodity. This is a significant liberalisation of the trade regime for that commodity.
India banned wheat exports in May 2022 in response to a sharp rise in global wheat prices triggered by the Russia-Ukraine conflict. The ban was intended to prevent domestic prices from being pulled up by global demand. At the time, India's own wheat harvest had been affected by an unusual heat wave, reducing output and tightening domestic supply. The ban was a classic use of export controls as a food-security instrument.
Over the following years, the situation reversed. India recorded a record wheat production of 120.65 million tonnes in the 2025-26 crop year (July-June), up from 117.94 million tonnes the previous year. Large harvests, combined with restricted exports, pushed domestic prices down. The all-India average retail price of wheat stood at Rs 31.46 per kg, with wheat flour at Rs 37.3 per kg, both flat compared to a year earlier. Farmers were receiving low prices despite high output, which is the classic 'bumper harvest paradox' in agricultural economics. …
Consider the following statements:
1.India is a member of the International Grains Council.
2.For the export or import of rice and wheat, it is necessary for a country to be a member of the International Grains Council.
Which of the statements given above is/are correct?
Which one of the following countries has been the largest exporter of rice in the world in the last five years?
What are the reformative steps taken by the Government to make food grain distribution system more effective? (2019 GS3 Mains, 15 marks, 250 words)
Consider the following statements regarding India's wheat export policy:
1.India banned wheat exports in May 2022 to control rising domestic prices.
2.The Directorate General of Foreign Trade (DGFT) classifies export goods into three categories: 'free', 'restricted', and 'prohibited'.
3.India is the world's largest wheat producer.
Which of the statements given above is/are correct?
Consider the following statements about the Food Corporation of India (FCI):
1.FCI is the nodal agency for procurement and distribution of foodgrains in India.
2.FCI's buffer stock of wheat is used exclusively for distribution under the Public Distribution System (PDS).
3.FCI can sell surplus grain in the open market through the Open Market Sale Scheme (OMSS) to moderate retail prices.
Which of the statements given above is/are correct?
Match the following wheat-related policy instruments with their primary purpose:
List I (Instrument) — List II (Primary Purpose)
A.Minimum Support Price (MSP) — 1. Moderate retail prices by releasing grain into the open market
B.Open Market Sale Scheme (OMSS) — 2. Guarantee a floor price to farmers at harvest
C.Export ban — 3. Prevent domestic prices from rising due to global demand pull
D.Buffer stock — 4. Maintain a strategic reserve for food security and price stabilisation
Select the correct answer using the codes given below:
With reference to India's wheat production and trade, consider the following statements:
1.Wheat is primarily a rabi crop in India, sown during the winter season.
2.Punjab and Haryana have the highest wheat yield per hectare among Indian states.
3.India's wheat export policy is administered by the Food Corporation of India (FCI).
Which of the statements given above is/are correct?
Consider the following statements regarding India's membership in the International Grains Council (IGC):
Statement I: India is a member of the International Grains Council.
Statement II: Membership of the International Grains Council is a legal prerequisite for a country to export or import wheat.
Which one of the following is correct in respect of the above statements?
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