NEW DELHI, Feb 9 - India has allowed exports of 50,000 tonnes of wheat to neighbouring Nepal signalling the government's confidence about another bumper harvest this year.
India, the world's second-biggest producer of wheat, banned exports of the grain in early 2007. It lifted the restriction for a few days in July 2009 before re-imposing it.
The Directorate General of Foreign Trade, an arm of the commerce ministry, said late on Tuesday the state-run Food Corp of India will export the grain from government stocks.
On Jan. 1, wheat stockpiles were 23.0 million tonnes, nearly three times the targeted 8.2 million. When the new marketing year begins on April 1, wheat stocks are expected at 14.7 million tonnes, Farm Minister Sharad Pawar said last month, versus a target of 4 million tonnes.
Traders said the partial lifting of the ban on wheat exports indicates the federal government's confidence about a higher wheat harvest, the main winter food crop of the country.
"This is a government-to-government deal. It indicates good stock position and a good harvest coming," said a trade official who did not wish to be named.
The outlook for India's wheat crop has improved after recent rains in the three leading producing states of Uttar Pradesh, Punjab and Haryana, agriculture officials said on Tuesday.
Source : Reuters