Small BusinessGovt lifts ban on wheat export
India today lifted a 28-month ban on wheat export by allowing export of 900,000 tonnes of the grain by government-owned trading agencies.
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Export of 650,000 tonnes of wheat products like wheat flour and maida has also been permitted, according to a notification issued by the Directorate General of Foreign Trade today.
This will help release the huge grain stock that the country is carrying due to a record purchase of wheat and rice. This notification follows a February decision by an Empowered Group of Ministers to allow export of wheat and wheat products up to 2 million tonnes. The ban was imposed in February 2007 as wheat procurement had declined and the country had to rely on costly imports.
Food Corporation of India, the country’s grain procurement and distribution agency, had procured a record 25 million tonnes of wheat in the 2008-09 rabi marketing season on the back of a handsome minimum support price of Rs 1,080 a quintal.
This is against the annual offtake of around 12-13 million tonnes under various public distribution schemes.
The three trading agencies under the commerce ministry — MMTC, STC and PEC have been allotted a quota of 300,000 tonnes wheat each for export by March 2010. No subsidy would be provided for such exports.
Trade officials, however, said wheat availability in the international market was adequate and export may not be feasible without a subsidy.