July 4, 2012

India permits two million tonnes wheat exports

As part of a strategy to reduce bulging stocks to avoid the grains getting rotten, India has allowed two million tonnes of wheat exports from government warehouses, Food Minister K.V. Thomas said on Tuesday (July 3).

"The cabinet has approved export of two million tonnes of wheat from the government stocks at a base price of US$228 a tonne," Thomas told reporters.

India, the world's second biggest wheat producer, has been struggling to manage huge stocks due to record harvests in recent years. On June 1, wheat stocks at government warehouses surged to a record 50.2 million tonnes, well above the official target of four million tonnes for the quarter ending June 30.

Thomas said a committee of senior officials, headed by the trade secretary, would monitor overseas sale of the grain. Government sources said a detailed plan on exports of wheat was being worked out.

In May, government run State Trading Corp. had received bids from six companies including global traders in a wheat export tender, meant to test the waters for potential overseas sales to countries including sanctions-hit Iran.