Why India just lifted its wheat export ban
India just ended its four-year wheat export ban, opening the door for 2.5 million metric tons of wheat and half a million tons of wheat products to go overseas.
This move comes as the country expects a bumper harvest and already has huge stockpiles—though Indian wheat is still pricier than what's selling on the world market.
Wheat surplus in India
India has way more wheat than it needs right now, with private stocks of about 7.5 million metric tons and sizable government reserves.
But here's the catch: unless prices drop, most of this wheat isn't likely to travel far—trade experts say exports will probably stay limited to nearby countries like Bangladesh because Indian prices just aren't competitive globally.
Clearing out India's overflowing granaries
With another record harvest on the horizon, India is trying to clear out its overflowing granaries.
Lifting the export ban is one way to deal with all that extra grain—even if it means accepting that sales might be slow at first.