Government may Export 2.5 million tonne wheat

BANGALORE: The Union food ministry is likely to move a proposal to the Cabinet this week for exporting additional 2.5 million tonne wheat from the bulging government stocks of 40 million tonne.

The proposal has the backing of other ministries like agriculture, commerce and finance. “The government has already approved 2 million tonne, out of which shipment of 1.8 million tonne has been contracted. Since August this year, we have exported wheat in small tranches, fetching prices in the range of $296.68 per tonne to $322.13,” said a senior food ministry official.

Looking at better realisation in exporting wheat in small tranches , the government will again divide 2.5 million tonne in tranches . “Global prices are moving up due to dwindling global supply.

While US wheat is fetching $370 a tonne, India grains too are commanding prices between $325 and $330 a tonne. It may further rise after speculation about dwindling Black Sea supplies and the prospect of export curbs in Ukraine ,” the official said.

According to International Grains Council’s latest report, in 2013-14 global wheat harvest is likely to go up by 2 per cent as the prices have stayed firm. “Given high prices, the total wheat harvested area for 2013-14 is set to increase 2 per cent although conditions for parts of the US crop are a concern,” IGC said. The prices in global markets are likely to be firm in the next few months, offering India a lucrative chance to expedite shipments.

Huge domestic reserves and diminishing global supply from the drought-hit Black Sea countries of Russia, Ukraine and Kazakhstan will help India to be a stable supplier. India exports wheat to Bangladesh, South Korea , Thailand, Vietnam, Indonesia, Yemen, and Oman.