Govt allows additional 5 mln tonne wheat export from FCI stock

Sitting on huge stocks, the government today allowed exports of additional five million tonnes of wheat from its godowns to clear storage space for new crop.
The exports of additional 5 million tonnes wheat would be undertaken only by private traders on the behalf of government. On earlier two occasions, only public sector trading firms were allowed to export 4.5 million tonnes.
The decision was taken by an informal group of ministers headed by Agriculture Minister Sharad Pawar.
Earlier in the day, the Cabinet Committee on Economic Affairs (CCEA) referred the matter to GoM, comprising Finance Minister P Chidambaram, Food Minister K V Thomas, Railways Minister P K Bansal and Commerce Minister Anand Sharma.

"The GoM has approved export of additional 5 million tonnes of wheat from the FCI stocks. Only private traders will be allowed to export this quantity," Thomas told reporters.
Recognised private traders will be allowed to export 2011-12 crop through a bidding process at a floor price of Rs 1,480 per quintal, he added.

Private traders will initially be allowed to export wheat that is lying in the Punjab godowns and they have to bear the transport cost till port for the export purpose, he added.
Thomas clarified that public trading firms will not participate in export of 5 million tonnes of wheat allocated for private traders.

"PSUs are already allowed to export 4.5 million tonnes of wheat from FCI godowns. They will continue to export. They will not participate in export of 5 million tonnes decided today. A separate CCEA note will be moved once the current allocated quantity is exhausted," Thomas said.
The additional export from FCI godowns would help create space for new wheat crop to be procured from this month-end. Permitting private traders to export on behalf of the Centre would speed up the shipments.