January 12, 2011

India to be watchful on agricultural exports

India will be cautious in the export of agricultural items in view of high food inflation of over 18%, Food and Agriculture Minister Sharad Pawar said Monday (Jan 10).

However, he said that there is no plan to suspend exports of five lakh tonnes of sugar, which has recently been allowed under Open General Licence (OGL).

At present, the government has banned export of non-basmati rice, wheat, pulses and onion.

"The government is cautious (on exports of agri-items) because food inflation has gone over 18%. We have to give a serious thought to each and every item," Pawar said.

On food prices, the minister said that barring vegetables, including onion, prices of rice, wheat and pulses are stable in the country. "By and large, there is no problem," he added.

The minister also expressed confidence that wheat output may exceed last year's level of 80.7 million tonnes.

"Overall, wheat crop is good. Looks like production will exceed last year's level," he said.