Govt considering permitting wheat export: Thomas

The government is considering allowing wheat exports on the back of estimates of record production this year, Food Minister K V Thomas said today.

The government will also look into allowing sugar exports besides reducing minimum export price (MEP) of onions, he said.  

"Wheat production is expected to be a record and we have sufficient stock in our godowns. We are looking at ways to use surplus stocks including exports," Thomas said.  

Wheat exports have been banned since 2007. As on January 1, the government godowns have 21.2 million tonnes of wheat, against the buffer norm of 11.2 million tonnes.

According to the government's second advance estimates, wheat production is likely to touch a new record of 81.47 million tonnes in the 2010-11 crop year and there are possibilities of it reaching even 84 million tonnes.

Thomas said he has asked the state governments to increase lifting of wheat under the open market sale scheme in order to help clear stock with the Food Corporation of India (FCI) and create a space for new crop.  

Earlier today, Agriculture Minister Sharad Pawar said that the government should give a serious thought to allowing exports of rice and sugar looking at bumper production and comfortable stock position. 

He said the matter would be discussed in the meeting of empowered group of ministers (EGoM), which is likely to be held later this week.  

On sugar exports, Thomas said that the government will consider allowing shipment of the sweetener as the country's production is estimated to be higher than the demand.

The government has kept on hold export of 5,00,000 tonnes of sugar under open general licence in the wake of high inflation.

India's sugar production is estimated to rise to 24.5 million tonnes in 2010-11 crop year (October-September) from around 19 million tonnes last year. While demand is pegged at 22 million tonnes. 

Asked about high export price of onions, Thomas agreed that "MEP is on the higher side at $600 per tonne and we are analysing  whether to reduce it as in global markets onion is available at $350-400 per tonne".

The government lifted the ban on onion export, but had fixed the export price at $600 per tonne.