May 22, 2012

India to decide on exporting wheat from government stocks

Exporting wheat from bulging government stocks to countries such as Iran, is going to be decided by Indian ministers who are likely to meet this week, a government source said on Monday (May 21).

The ministers will also discuss the need to give incentives to exports due to lower global prices, the source said.

Last week, a government source had said India was considering wheat exports to Iran as New Delhi hoped to boost sales to the sanctions-hit nation to help settle part of its oil imports bill via a bilateral mechanism.

Iran has not bought Indian wheat in more than a decade over quality issues, while other buyers have not raised issues over quality.

Wheat stocks at government warehouses on May 1 were 38.2 million tonnes, more than nine times the official target of four million tonnes for the quarter ending June 30.