India exports wheat worth Rs 2,590 crores

NEW DELHI: Government has exported 1.5 million tonnes wheat for an estimated Rs 2,590 crore out of 2 MT stocks allowed for overseas shipments from surplus stocks of Food Corporation of India (FCI).

"The government has so far awarded tenders of 1.5 MT of wheat, against the allowed quantity of 2 MT, and it is unlikely to float any new tenders for export of wheat," a source said.

The average price realised from export of wheat is at USD 283 per tonne and government is estimated to earn Rs 2,590 crore, the source added.

In 2012-13, the government earned USD 1.4 billion from export of 4.2 million tonnes of wheat by PSUs. Indian wheat fetched an average price of USD 311.38 per tonne in the previous financial year.

Majority of the wheat has been shipped to neighbouring Bangladesh, while some quantities has also been exported to Ethiopia, Yemen, South Korea and Sri Lanka.

In August 2013, the Centre had allowed FCI to export 2 MT wheat from its surplus stocks via public trading firms STC, MMTC and PEC at a base price of USD 300 per tonne.

Later, the floor price was cut to USD 260 per tonne to make shipments viable. As other major international players US and Canada were offering their wheat at lower prices in the international market.

Indian wheat in the international market mainly competes with 'US SRW wheat gulf' and 'Black sea milling wheat'.

The government has set a target to procure 31 MT wheat in the ongoing season.