February 12, 2010

India, the world's second-biggest producer of wheat, has approved export of 50,000 tonnes of the grain to Nepal.

India had banned the export in early 2007 and had lifted the restriction for a few days in July last year before re-imposing it.

Nepal's high-level government officials have been holding discussions with India to resume the export of food items, including wheat. Ministry spokesperson Ganesh Dhakal said the Indian government has agreed to allow the export of wheat as requested by the government of Nepal.

"We are also requesting the Indian government to allow export of other food items to Nepal to tackle the looming food crisis," Dhakal said.

The Directorate General of Foreign Trade, an arm of the commerce ministry of India, said the state-run Food Corporation of India will export the grain from government inventories.

"On January 1, wheat stockpiles were 23 million tonnes, nearly three times the targeted 8.2 million. When the new marketing year begins on April 1, wheat supplies are expected to be 4.7 million tonnes," Indian Agriculture Minister Sharad Pawar said last month.

Indian traders said the partial lifting of the ban on wheat exports indicates the federal government's confidence on higher wheat harvests.