NEW DELHI (Commodity Online) : Divided over Wheat exports decision, India’s Food and Finance Ministries are trying to sort out the issue at the earliest.
Finance minister Pranab Mukherjee assured a group of exporters that a decision will be taken soon on the issue.
An EGoM chaired by Finance Minister Pranab Mukherjee had earlier allowed exports but the decision was deferred in the wake of depressed prices in the global market.
India had banned wheat exports since early 2007 to boost domestic supply and contain inflation. The proposal to open exports was also supported in the wake of shortage of storage capacity sources
However, country’s food ministry continued to oppose the idea as it prefers to distribute the excess to the poor within the country.
India is distributing 5 million tons Wheat to below poverty line (BPL) families, 5 mt to above poverty line (APL) families and another 5mt to the 150 poorest districts from the stocks.
India’s domestic wheat prices are higher than international rates by around $100 (Rs. 4,410) per tonne and exports can be possible only with the help of subsidies to the same extent, traders said.
Wheat is currently trading at around $244 per tonne in the Black Sea region, while Food Corporation of India (FCI) wheat at economic cost is at $359 per tonne, showing a gap of more than $100.
http://www.commodityonline.com/news/India-wheat-exports-verdict-remains-in-balance-41242-3-1.html
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