2 million tonnes of wheat to be exported

By Our Special Correspondent

NEW DELHI, DEC. 1. The Department of Food has set a quantitative ceiling of 2 million tonnes for wheat export during the current financial year. The State Trading Corporation of India, the Minerals and Metals Trading Corporation of India and the Projects and Equipment Corporation of India Limited (PEC) have been nominated as agencies for export of wheat from Government stocks.

On November 1, the central pool had a stock of 17.99 million tonnes of rice and 26.5 million tonnes of wheat as against a October 1 norm of 6.5 million tonnes of rice and 11.6 million tonnes of wheat. The Food Corporation of India (FCI) has been allowed to offer wheat for export at a price not lower than the central issue price for the Below Poverty Line (BPL) category of people which is now Rs. 4150 a tonne.

Private sector plea

The private sector has asked the Government to extend to it the benefits of the recommendations of the Group of Ministers relating to the export of two million tonnes of wheat at fixed price of Rs. 4,150 a tonne so that it could also undertake exports.

In a representation to the Government, the Associated Chamber of Commerce and Industry of India (Assocham) said the price of Rs 4,150 a tonne (ex-Vizag or Kakinada port godowns) was a workable price in the international market. So, private parties should be allowed directly to get allocation from FCI on the same terms offered to PSUs.

Although the Government had allowed STC, MMTC and PEC to export, they have not been able to concretise the business for any substantial quantity. The FCI had invited bids from private exporters for more than one million tonnes and they responded by quoting different prices ranging from Rs. 4,150 to Rs. 4,445 a tonne. But the Government had not allowed export of FCI wheat and rice by private exporters.

The Assocham has pointed out that FCI has about 15.50 lakh tonnes of rice and 4.85 lakh tonnes of wheat lying in Andhra Pradesh and exports were taking place from Kakinada and Vizag and still a sizable quantity of rice and wheat can be exported through these ports to Southeast Asia and Africa.

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