Cabinet approves export of 20 lakh tonnes of wheat from stock of Food Corporation

The Cabinet Committee on Economic Affairs (CCEA) has approved the export of 20 lakh tonnes of wheat from central pool stock of Food Corporation of India (FCI) during the current financial year subject to a floor price of US$ 300 per metric tonne through the Central Public Sector Undertakings (CPSUs) namely STC, MMTC and PEC.

Similar procedure will be followed for this export as was done earlier for export of 45 lakh tonnes of wheat. These exports arc to be completed by 31-03-2014.

The Cabinet Committee on Economic Affairs further approved reimbursement of loss by the Government to FCI on account of the exports calculated as the difference between the economic cost to FCI and its realisation from the exporting CPSUs after deduction of their commission @ 1.5 percent of FOB price and the actual port expenses.

The export of 20 lakh tonnes of wheat from the surplus Central Pool stocks of FCl would make available space for storage of fresh foodgrains in the godowns of FCl and thereby helping in proper management: of foodgrain stocks.

On the other hand, apart from earning additional revenue, the storage and handling cost of about Rs. 25 crore per one lakh tonne of wheat per year incurred by FCl will be saved for the quantity exported.