Wheat export floor price cut by $40/tonne

The Cabinet reduced the export floor price on wheat from $300 a tonne to $260 a tonne

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To enable swifter movement of wheat stocks from state warehouses, the Cabinet decided on Wednesday to reduce the export floor price from $300 a tonne at present to $260 a tonne. And, to allow export till June 31, 2014, instead of March 31, 2014.

It also okayed a new Pharmaceutical Purchase Policy for central public sector units , for 103 drugs from state-run companies to be used in hospitals and through its welfare programmes at a discounted rate. The list of medicines may be reviewed and revised by the department as needed.

In wheat export tenders floated by state-owned MMTC, STC and PEC last month for export of 160,000 tonnes, global buyers had offered only $260-267 a tonne against the government's floor of $300 a tonne. This floor was approved in August by the Cabinet Committee on Economic Affairs (CCEA); it okayed export up to two million tonnes from Food Corporation of India godowns in this financial year, through STC, MMTC and PEC. As on October 1, Food Corporation of India had a wheat stock of 36 mt, against a requirement of only 21.2 mt.

The CCEA also approved a new Integrated Processing Development Scheme for the textile sector, with a total cost of Rs 500 crore in the 12th Plan. This is to address environmental issues faced by textile processing units.

Also, the cabinet decided to confer international airport status to those at Bhubaneswar and Imphal.

Post facto approval was also given to some amendments in the Food Security Bill, including extension of the deadline for implementing the law to one year from the earlier six months.