July 28, 2010

India allows three lakh tonnes of grain export

The Indian government has allowed export of three lakh tonnes of rice and wheat through diplomatic channels to Bangladesh and Nepal.

"There was some request from the External Affairs Ministry for additional quantity (of foodgrains for export) to Bangladesh and Nepal and we have accepted that," Food and Agriculture Minister Sharad Pawar said.

"Recently, the Empowered Group of Ministers (EGOM) on food, headed by Finance Minister Pranab Mukherjee, had approved export of one lakh tonnes to Nepal and two lakh tonnes to Bangladesh," he said.

Asked if the government will export foodgrains at lower prices, Pawar said, "That (about price) was not communicated to me and ultimately the decision will be taken by the External Affairs Ministry."

At present, the government godowns have 57.8 million tonne foodgrains. India has imposed a ban on rice and wheat export to contain domestic prices. The ban on wheat was imposed in February 2007. But the ban was relaxed now and then on diplomatic grounds.

In May, the government had allowed the export of four lakh tonnes of wheat to Bangladesh from the central pool at INR15.43 (US$0.33) per kg. In February, export of 50,000 tonnes of the foodgrain was allowed to Nepal.

The country is estimated to have produced 80.71 million tonnes of wheat in 2009-10.