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February grain stocks more than doubled on bumper harvests and curbs on rice and wheat exports, government sources said on Friday, bolstering the case for select food exports to take advantage of higher global prices.

On Feb. 1, wheat stocks were at 19.4 million tonnes, more than double the 8.2-million-tonne target but lower than last month's 21.5 million tonnes.

Rice stocks soared to 27.8 million tonnes against a target of 11.8 million tonnes, higher than January's 25.6 million tonnes.

Mounting stockpile of rice and wheat gives the government some cushion when food inflation remains in double digits.

India's food price index rose 13.07 percent in the year to Jan. 29, government data on Thursday showed.

But trade and industry officials believe India, the world's second-biggest rice and wheat producer, can afford select food exports.

"There is an imminent case for exports of all major food items as India has more than surplus stocks, while there is a strong global demand," said Atul Chaturvedi, chief executive officer for farm business at Adani, the country's biggest exporter of farm goods.

Overflowing grain bins have raised storage concerns, forcing the government to take steps to augment warehouse capacities.

Analysts say despite bulging stocks, India may continue with grain export curbs as Prime Minister Manmohan Singh's government is trying to bring a bill in parliament to further subsidise grains for the poor.

State-run Food Corp of India, the main grain procurement agency, buys wheat from local farmers between March and May, while it procures rice throughout the year from October.

The government buys rice and wheat from local farmers to build reserves for emergency, run various welfare programmes and protect farmers from distress sale.

Source : in.reuters.com