Wheat Exports Stop For Want Of Permits

There have been no wheat exports since September 30, said a Mumbai-based foodgrains exporter.

Earlier this year the government released 1.13 million tonnes of wheat for export in fiscal 1996-97. But APEDA, the agency which handles exports, has not issued export licences, called registration-cum-allocation certificates (RCACs).

Analysts said the state-run Food Corporation of India (FCI) had procured only 8.5 million tonnes of wheat from farmers in fiscal 1995-96 against a target of 12 million tonnes.

The government controls wheat exports. Surplus wheat which it buys in one fiscal year is generally not available for export sales until the following fiscal year, as the harvest falls in February. The government was not able to release the export quota due to the drop in procurement, said an analyst.

 

He said Indian farmers were opting to sell wheat in the open market at higher prices rather than sell it to FCI at a lower price.

Farmers are selling wheat in the open market at 550 rupees per quintal but FCI procures it at only 400-420 rupees per quintal. This accounts for the lower procurement by FCI, he said.

Last year the government released 2.5 million tonnes of wheat for export in fiscal 1995-96. However, Indian exporters were not able to ship the allotted quantity by March 31, the end of the fiscal year.