Rangarajan panel to consider foodgrain export from government stock

NEW DELHI: The inter-ministerial committee, headed by PMEAC Chairman C Rangarajan, would look into the possibility of exporting wheat and rice from government stock to clear storage space, Food Minister K V Thomas said today.

In a high-level meeting called by Prime Minister Manmohan Singh earlier this week, the government took a decision to form a committee that would recommend ways to handle surplus foodgrains stocks in the government godowns.

Asked whether government is considering to export wheat and rice from its godowns, Thomas said: "Rangarajan committee will look into this possibility".

The minister said that wheat and rice exports have been already allowed under Open General Licence (OGL) and so far about 4.25 lakh tonnes of wheat and 42.5 lakh tonnes of rice have been exported.

Thomas said the government is thinking of some mechanism to offload surplus stocks lying in government godowns.

"One is to allocate more to states under BPL and APL. And some export is also possible. We are trying to work out a scheme," he said.

The Food Ministry has proposed distribution of nearly 15 million tonnes to ration card holders for clearing storage space to store new crops. The proposal would be considered by the Rangarajan Committee as it involves huge subsidy.

The minister said he was in touch with states to find solutions for managing the surplus stocks.

As on April 1, the government had wheat and rice stocks of over 53 million tonnes, 21 per cent higher than the year-ago period. The figure is expected to reach 75 million tonnes by June as wheat procurement is currently being undertaken.

India is estimated to have harvested a record rice and wheat procurement at 103.41 million tonnes and 90.23 million tonnes, respectively in the 2011-12 crop year (July-June).