Govt Mulls Export Of Wheat & Cotton.

Centre proposes to allow export of wheat and cotton as prospects of record harvests in the rabi season brighten, agriculture minister Sharad Pawar said on Wednesday.

“Production of food grain is highest since 1947. The government has to give serious thought on storage, allocation and exports of food grains this year,” said Pawar on the sidelines of a preparatory meeting ahead of kharif cropping season.

Agriculture ministry also released its third estimate of production levels for all major crops and projected record food grains output of 235.88 million tonnes, up by 8.14 per cent. Wheat harvest in the country is projected at an all-time high since independence at 84.27 million tonnes while rice output at 80.38 million tonne.

“We have more stocks than buffer norms. Government must take a view on allowing exports,” he added. As on April 1, rice and wheat stocks in the country totalled 52 million tonnes, way ahead of the buffer norms for the period. While exports of wheat were banned by India in 2007, rice exports were banned the following year.

Quoting commission of agriculture cost and prices (CACP) estimates, Pawar said wheat stocks alone were valued at Rs 40,000 crore. “This is a valuable stock and proper usage has to be given a serious thought,” he said.

Asked about cotton exports, Pawar quoted higher production figure of 33.9 million tonnes as compared to 24.2 million tonnes in the last season. “This year cotton production is higher. This certainly gives scope for more exports. We will discuss it in the cabinet committee (on economic affairs) meeting on Wednesday evening,” said Pawar.

The government has already allowed 5.5 million tonnes cotton export till January this year and lifted the export cap on 720 million tonnes yarn. The textile industry is already complaining of severe shortage in natural fibre. It had urged the government to prevent further exports in light of actual production being lower by up to four million tonnes.

A decision to announce bonus over and above a higher minimum support price for wheat this year is also likely to be decided at a ministerial panel meeting on Thursday. CACP is likely to announce Rs 50 bonus over and above wheat MSP of Rs 1,120 per quintal this year.

Source : mydigitalfc.com