January 17, 2005

India Looks To Long-Term Grain Export

India should frame a long-term food grain export policy and spell out norms on wheat exports, an expert said.

"We need to have a long term food grain policy in order to leverage our strengths in world market," president of Adani Exports, Atul Chaturvedi, said at the 'Grain Asia 2005' summit here.

Due to the absence of any comprehensive grain policy, he said, the exports face a lot of problem in the global markets. He said the Food Corporation of India's policy till last year of allowing food grain exports should have continued. There was no point holding surplus stocks for 3-4 years at godowns and subsequently liquidating them via exports, he added.

Instead, FCI may consider allowing surplus wheat stocks, over and above the mandatory buffer norm, to exporters so that continuity in wheat export policy is maintained, he added.

When traders again start exporting wheat, Mr Chaturvedi said the international buyers would ask for more discounts. The initial experience in wheat export to countries like Australia showed that prices were discounted in the range of $40-50 per ton compared to then prevailing prices in the international market.