March 6, 2009
India to export wheat in May
A panel of Indian ministers has agreed to lift a ban on wheat exports in May, according to local media on Thursday (Mar 5).
India will allow exports of two million tonnes of wheat once national parliamentary polls scheduled for April and May have been held, the media said.
India, the world's second-largest wheat producer, banned wheat exports in early 2007, and food agencies have become concerned as the country's grain bins start to overflow with wheat stock.
Although the government is not allowed to announce any major policy change in the build up to voting, ministers would be free to remove the ban in the period between the end of balloting on May 13 and the formation of a new administration.
Trade officials said India had large stocks of wheat and could easily handle big exports, but would have to provide incentives to support shipments as global prices had declined sharply.
India's decision to allow exports may further pressurise benchmark CBOT prices, and the Middle East and Southeast Asia could be potential export markets, trade officials said.
