Centre opened up wheat exports but finds no takers in private sector without subsidy

NEW DELHI: The Centre has opened up free wheat exports on the back of record stocks of 37.8mt, well above the prescribed buffer norms for the July 1 quarter, lying with it. Although there is as yet no formal announcement on this, agriculture and food processing minister Sharad Pawar said at an ICAR function here that there was "no ban on wheat exports" as of now, indicating that a decision to give this the go ahead was already taken at the meeting of the food EGoM headed by Pranab Mukherjee here on Monday last.

He indicated that wheat output in the 2010-11 agricultural year was a record 86mt against last year's 80.80mt. That will be reflected in the soon to be released Fourth Advance estimates on crop production.

A formal announcement was held up on account of the reluctance of the finance ministry to extend any sort of export subsidy to the private sector or even allowing access to subsidised Central stocks by them.

Interestingly, while Pawar's agriculture ministry and commerce ministry were in favour on subsidised exports to clear stocking space for the Kharif marketing season when around 35mt of foodgrain are expected in addition, sources said, the food ministry backed by the FCI were assertive that they had enough storage space for the present and that no wheat would be allowed for export from Central stocks by the private sector. Without an export subsidy, of course, the latter would not want to export onccount of unfavourable global wheat prices currently.