Centre gives in-principle nod to lift ban on wheat exports

The government today agreed in-principle to lift an over two-year-old ban on shipment of wheat and wheat products after elections, due in April and May, but refrained from doing away with the curbs on the export of non-basmati rice.

“An empowered group of ministers (EGoM), headed by External Affairs Minister Pranab Mukherjee, today took in-principle decision to lift ban on wheat and wheat products exports. Two million tonnes of wheat will be allowed for exports after elections,” an official source said here.

A committee of secretaries, to be headed by Cabinet Secretary K M Chandrasekhar, would work out the modalities of the exports, he said, adding that a notification to this effect would be issued after the elections.

However, the EGoM ruled out similar concessions on the export of non-basmati rice. The industry demand for lowering of the minimum export price (MEP) of basmati rice from the present $1,100 a tonne, too, has not been accepted as of now.

“There is no plan to lift the curbs on the export of non-basmati rice,” he said, adding that “the MEP of basmati will stay at the present level for the time being”.

The government had banned the export of wheat in February 2007 and that of non-basmati rice in April last year to boost domestic supply and contain price rise.