June 5, 2006

India mulls free import and export of grain
 

India's government is considering freely importing and exporting foodgrain based on the demand and supply situation in the country.

Food and agriculture minister, Sharad Pawar said on Friday (Jun 3), said the need to freely import and export foodgrain depending on the demand and supply situation is fast gaining ground.

Pawar said that while lifting restrictions, considerations should also be made to assess whether there is enough availability of grains such as wheat rice and pulses for trade in the world market.

India had a good harvest of 89.53 million tonne rice in 2005-06 and a good stock in the government pool.

Regarding two tenders floated for import of 3.5 million tonnes of wheat, Pawar said the response had been less favourable than expected and that so far, only orders for 1.3 million tonnes had been finalised.

He noted that surplus supplies of grains had been falling in the last 5 to 6 years and exports had reduced availability in the country.