January 2, 2013

An additional 25 lakh (100,000) tonnes of wheat export from the central pool stocks of the Food Corporation of India (FCI) was approved by India's Cabinet Committee on Economic Affairs.

The additional export cost is to be determined by individual tenders subject to the floor price of US$300 per tonne, following the same procedure as was followed for export of 20 lakh tonnes of wheat through exporting Central Public Sector Undertakings of the Department of Commerce i.e. STC, MMTC & PEC. These exports are to be completed by June 2013.

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 actual port expenses and their commission at the rate of 2.5%, for which additional funds over and above budget estimate shall be provided.

The export of additional 25 lakh tonnes of wheat from the central pool stocks of FCI would make available more space for storage of food grains in the godowns of FCI and thereby easing the problem of storage being faced by the corporation.

The ultimate beneficiary would be the government of India as the export of 25 lakh tonnes of wheat would ensure the efficient management of food stocks in central pool.

A meeting was taken by the Prime Minister earlier this month to discuss the disposal of the excess stocks of food grains of the Food Corporation of India (FCI). It was decided that the Department of Food & Public Distribution would make all efforts to export up to four million tonnes of wheat to Iran and other West Asian countries and together with the Department of Commerce explore the possibility of exporting grains to certain countries on bilateral basis on commercial terms.