Govt looks to expedite wheat exports

OUR BUREAU, THE HINDU BUSINESS LINE
NEW DELHI, MAY 18:
The Government is looking at expediting wheat exports in a bid to create storage space for new arrivals that have peaked.

An inter-ministerial panel comprising the Food Minister, Prof K.V. Thomas; the Commerce Minister, Mr Anand Sharma; and the Agriculture Minister, Mr Sharad Pawar, discussed the modalities of expediting the shipments ahead of monsoon.

“We are looking at stepping up exports. We have asked public sector units to step in and be proactive,” Mr Anand Sharma told reporters.

A Committee of Secretaries, chaired by the Secretary, Department of Industrial Policy and Promotion and Commerce, will co-ordinate the exports. “We are also co-ordinating closely with the Railways. The Railway Board will be part of this mechanism and will ensure the availability of rakes for the expeditious movement of stocks to the ports,” Mr Sharma said.

ON SUBSIDY

However, he clarified that the Government had not taken any view on subsidising the wheat exports. “So far, no view has been taken. It is all notional because the carrying costs of Food Corporation of India (FCI) are such that losses are in any case being incurred. Everyday there is a loss,” Mr Sharma said.

The trade feels that wheat exports at current prices are unviable and have to be incentivised because the domestic prices are higher than the prevailing global rates.

EXPORTS

On quantifying the exportable surplus, Mr Sharma said there's enormous quantity available for exports. The granaries are full and the storage capacity is bursting at the seam, Mr Sharma said.

Agency reports said the panel headed by Chairman of the Prime Minister's Economic Advisory Council, Dr C. Rangarajan, has suggested exports of two million tonnes from Government stocks and another one million tonnes through private agencies with some assistance to make shipments viable. The panel has also suggested offloading additional 13 million tonne through the public distribution system and open market.

Last week, the State Trading Corporation floated a tender inviting bids from traders to export wheat from the FCI's godowns at Mundra and Kandla ports. The bids invited by May 24 will be valid till June 22.

Wheat stocks stood at an all-time high of 38.19 million tonnes in the Central pool as of May 1, on bumper harvest and brisk ongoing procurement in Punjab, Haryana and Madhya Pradesh. Wheat procurement, as on May 17, exceeded last year's level by 1.3 million tonnes to touch 29.61 million tonnes.