Pranab-led EGoM to take call on export, additional supply of wheat.

To ease the foodgrain storage crisis, an Empowered Group of Ministers headed by Finance Minister Pranab Mukherjee is likely to meet next week to decide on the export of wheat and additional supply of the grain through ration shops.

"By and large, we agree the with recommendations made by the Rangarajan panel to handle surplus stocks. Based on those suggestions, we are preparing a note for the EGoM meeting likely to be held next week," K V Thomas, food minister, said.

A committee, headed by C Rangarajan, chief of the Prime Minister's Economic Advisory Council (PMEAC), recently submitted a report to the prime minister suggesting that 10 million tonnes of wheat be offloaded to BPL and APL families and three million tonnes via the open market sale (OMS) scheme.

The panel also suggested export of two million tonnes of wheat from the government godowns. It also favoured giving incentives to private traders for export of one million tonnes as wheat exports at present are unviable.

At present, the government has storage capacity to keep 62.8 million tonnes of foodgrains, while the government foodgrains stocks are expected to touch 75 million tonnes by end of this month due to record production and procurement.

Thomas said, "The EGoM will take a final call on these suggestions as huge subsidies are involved. The panel has estimated subsidy of around Rs 17,000 crore."

The EGoM meeting is likely to be scheduled next week as the commerce ministry is still getting to know whether wheat exports would be viable or not. The ministry, through the state-run State Trading Corporation (STC), has invited a tender to discover export prices, he said.

In view of storage problems, the prime minister had set up an expert panel under chairmanship of the PMEAC chief on May 2, 2012, to prepare a strategy to use surplus grains.

The government lifted ban on wheat exports in September 2011 and since then only 8,00,000 tonnes of the grain has been exported as shipments were unviable. In the same period, India has shipped about 50,00,000 tonnes of non-basmati rice.

The government stocks are increasing due to bumper production and procurement in the last few years. This year wheat production is expected to reach a record 90.2 million tonnes.

Source : fnbnews.com