Time Ripe For Higher Export Of Rice, Wheat & Sugar: Secretaries Panel.

NEW DELHI: India may allow export of wheat, non-basmati rice and sugar next week to take advantage of the rising trend in global prices.

The committee of secretaries on food, which met on Friday, has decided that there is scope for export of all these items, a government official said. "The CoS will forward its recommendation to the empowered group of ministers, which is likely to meet next week. This is a good time to export as may prices rise further due to low global stocks," he told ET.

The food EGoM is an apex body of ministers headed by agriculture minister Sharad Pawar that decides on export and import.

As per the World Bank Food Price Index, grain prices were on an average 33% higher in July compared to a year ago. "Although global prices of wheat are still slightly lower than domestic wheat prices in India, it may be feasible to export from some parts of the country," the official said.

European wheat futures rose sharply this month because of concerns over crop damage in south-eastern Europe due to incessant rains. The International Grains Council has already reduced its forecast of world wheat production for 2010-11 to 651 million tonnes, which is below global consumption of 655 million tonnes, due to poor weather in many countries.

"If we want to offload a part of our overflowing stocks in the world market, this may not be a very bad time," the official said.

The government may also allow export of another 1 million tonnes of non-basmati. It had allowed export of a similar amount last month, but a high court had ordered the ministry to stop allocation of export quotas as some traders had raised objections. "The commerce department has filed a special leave petition with the Supreme Court against the order," he said. The CoS, headed by commerce secretary Rahul Khullar, has recommended export of additional sugar, over and above the 1 million tonnes allowed so far.

Wheat exports were banned four years ago to check spiralling domestic prices, but current wheat stocks have crossed 33.6 million tonnes, well beyond the prescribed minimum of 20 million tonnes. In fact, some wheat lying in the open has started rotting.

ON TIME DEPB REPLACEMENT
The government is trying to expedite finalisation of an alternative scheme that will replace the popular input duty remission programme, DEPB, when it lapses next month end.

Ruling out another extension, commerce and industry minister Anand Sharma said that the finance ministry did not favour it and attempts were now being made to ensure that an alternative is ready on time. He said the national manufacturing policy is likely to be in place within the next few weeks.

Source : economictimes.indiatimes.com