May 19, 2011

 

India to extend closing date for wheat product exports

 

 

India's food ministry intends to extend the deadline for shipments of about 500,000 tonnes of wheat products that remained unsold out of the 650,000 tonnes allowed earlier to private traders, a government official said Wednesday (May 18).

 

India, the world's second-largest wheat producer, allowed private traders to export wheat products for a limited period in 2009 and the programme was extended in phases until March 31, 2011, after the industry failed to meet the volume target in the stipulated time.

 

"As it is already an approved quantity, we do not see any problem in extending the deadline for exports by six months to one year," a food ministry official, who declined to be identified, said.

 

The proposal for the extension on the deadline will soon be taken to an inter-ministerial panel for its approval, he added.

 

Industry officials have sought a deadline extension until March 31, 2012, as they have been able to export only around 150,000 tonnes of wheat products out of the total 650,000 tonnes.

 

Indian traders said a previous ban on exports of wheat products resulted in clients buying from other sources.

 

"It took us time to win the confidence of overseas buyers and market our products after the government lifted a more than two-year ban in mid-2009," said Veena Sharma, secretary of the Roller Flour Mills Federation of India.

 

Denmark, Dubai, Middle East, Indonesia, Sri Lanka, Nepal and Maldives are the main buyers of Indian wheat products such as semolina and wheat flour that are used to make bread and bakery items, Sharma said.

 

India is expecting a record wheat output of 84.27 million tonnes this crop year through June, up from 80.8 million tonnes last year.

 

The country's food stocks swelled to nearly triple its requirement to 59.13 million tonnes as of May 1, triggering speculation that the government may consider limited grain exports to free up storage space.