| Date: |
29-06-2011 |
| Subject: |
Export Ban On Rice, Wheat May End |
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India may soon lift a ban on the export of wheat and rice with production of both cereals exceeding targets, a government official said.
The next meeting of an empowered group of ministers (eGoM), scheduled next week, is expected to permit the export of 2 million tonnes (mt) of wheat and 1 mt of rice, the official said, requesting anonymity.
“India’s wheat and rice production have crossed targets and our procurement also has been at a record high,” the official said. “Besides, currently the prices are high in the international market.”
He said the food department and farm ministry have both agreed to allow limited export of the commodities.
The ministerial group led by finance minister Pranab Mukherjee had on 23 June allowed the export of 500,000 tonnes of sugar, in addition to the 500,000 tonnes export of the sweetener allowed in April.
India expects to harvest 85 mt of wheat this year, while rice output is projected at 94.1 mt. The government has so far been able to purchase 28 mt of wheat, higher than the estimated procurement of 26.2 mt. It also bought 31.4 mt rice against an estimated 28 mt. This is also higher than last year’s procurement of 25.38 mt. The government is under pressure from the farming lobby to export agricultural produce because global prices are high, said the official cited above. The government expects a bountiful harvest to ensure that domestic prices are stable, he added.
To be sure, the decision to export 500,000 tonnes of sugar on 23 June has pushed up retail prices in the local market by Rs.4 per kg, according to a report by PTI news agency.
India banned wheat exports in February 2007, when inadequate rain hit production. The government lifted the ban in July 2009 but reimposed it again within 10 days.
The Congress-led United Progressive Alliance (UPA) government has so far refused to lift the ban on foodgrain export from its buffer stock as it wants to make sure enough inventory is available when a national food security law comes into force. The proposed legislation aims to provide foodgrains to the poor at subsidised rates.
Source : livemint.com
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