India likely to scrap wheat export ban after polls

The Indian government is expected to lift a ban on wheat exports after the April-May federal elections, as there is no space to store the new crop which is getting harvested now, government and industry officials said.

The country, which is expected to have a record rice production of 99 million tonnes and about 78 million tonnes of wheat in the crop year to June 2009, is grappling with overflowing granaries.

"Exports are inevitable, otherwise there will be huge wastage," a senior government official, who did not wish to be identified, told Dow Jones Newswires.

As on March 1, India had stocks of 21.26 million tonnes of rice and 15.28 million tonnes of wheat.

State-run companies bought 22.6 million tonnes of wheat and 28.49 million tonnes of rice in 2008 and purchases will about the same this year, spokesman of Food Corporation of India said.