India: Wheat export ban lifted.

For three years there has been a law in place prohibiting wheat from being shipped overseas. The ban was lifted briefly in July 2009, before being imposed again. Now the rules have been relaxed, according to India’s Director General of Foreign Trade, R S Gujral, to allow the export of 400,000 tons of wheat to Bangladesh by the  Food Corporation of India.

"Wheat shall be exported [to Bangladesh] at economic cost," Gujral said.

India is the second largest producer of wheat in the world, with wheat stocks standing at more than seven times its target of 30.8 million tons at the beginning of April.

Bangladesh, the world’s fifth highest wheat importer, issued a request for Indian wheat exports last week when Bangladeshi Prime Minister Sheik Hasina’s economic advisor, Mashiur Rahman, led a delegation to New Delhi.

The agreement to partially lift the ban followed talks with Indian Finance Minister, Pranab Muhkerjee, along with other senior ministers and officials of the Indian Foreign Ministry.
Bangladesh’s domestic wheat production remains stagnant, with wheat imports expected to rise over the coming year.

Source : foodanddrinkdigital.com