India won't subsidise wheat exports by private traders

India's federal government, which is expected to allow wheat exports later this month by private traders for the first time since 2007, has rejected a proposal by the industry for a subsidy on the shipments, industry officials said Wednesday (May 13).

Industry officials had sought a subsidy as local wheat prices are quoting higher than global prices. They said the only way to offload some of the country's bulging wheat stocks was through providing export subsidies.

"The private trade has to procure from the open market and export it on its own," said Veena Sharma, secretary of Roller Flour Millers Association.

A high-ranking Indian panel of bureaucrats has agreed in principle to allow private trade to export up to 2 million tonnes of wheat, and the formal notification is expected after May 15.