Govt to adopt cautious approach on agri-items export

The government will adopt a cautious approach on allowing export of agricultural items in view of high food inflation of over 18 per cent, Food and Agriculture Minister Sharad Pawar said today.

However, he said that there is no plan to suspend exports of 5 lakh tonnes of sugar, which has recently been allowed under open general licence (OGL).

"Not yet... We have not taken a decision," Pawar told reporters when asked if the government would ban sugar exports.

At present, the government has banned export of non-basmati rice, wheat, pulses and onion.

"The government is cautious (on exports of agri-items) because food inflation has gone over 18 per cent. We have to give a serious thought to each and every item," Pawar said.

He mentioned that there is demand from states like Andhra Pradesh, Tamil Nadu and Kerala to allow export of certain varieties of non-basmati rice.

"We have not taken a decision (on rice export). We have to take some views," he said.

On food prices, the minister said that barring vegetables, including onion, prices of rice, wheat and pulses are stable in the country. "By and large, there is no problem," he added.

On sugar production, Pawar said, "Based on reports from states, we expect sugar production to be 24.5 million tonnes in the 2010-11 crop year (October-September)."

Last year, sugar production was around 19 million tonnes.

The minister also expressed confidence that wheat output may exceed last year's level of 80.7 million tonnes.

"Overall, wheat crop is good. Looks like production will exceed last year's level," he said.