India has approved the export of 200,000 tonnes of wheat to Nepal through the National Cooperative Exports Limited (NCEL), according to a statement issued by the Directorate General of Foreign Trade (DGFT) on January 4.  

The DGFT’s statement stated: “...the Central Government hereby permits export of 2,00,000 MTs of wheat (HSN 1001) to Nepal, through National Cooperative Exports Limited (NCEL).”  

Nepal had requested the Southern neighbour to supply the food commodity some months ago after domestic prices surged amid limited supply.  

Although India, the world's second-largest wheat producer, imposed a ban on wheat exports in May 2022 to safeguard its food security, it has allowed Nepal to import the food commodity under a special quota system. Nepal relies heavily on Indian wheat to meet its domestic demand. The country’s domestic production covers only about 70% of the demand for industrial purposes.  

In addition to India, Nepal also imports wheat from other countries, including Mexico, China, Japan, Thailand, the UK, and Bangladesh.  

Globally, India is the eighth-largest wheat exporter, following Russia, the European Union, Australia, the United States, Ukraine, Argentina, and Canada.