September 17, 2010

India mulls wheat exports amid space shortage

Following reports about a serious lack of storage capacity in the country,the Indian government may consider allowing exports of wheat.

"Export of wheat is a matter which we must seriously look into," Minister of State for Agriculture K V Thomas told reporters on the sideline of an Associated Chambers of Commerce and Industry of India (Assocham) event on Wednesday (Sep 15). However, he declined to comment further on the issue.

While speaking at the inauguration of the event, the minister said the government's nodal agency for procurement and distribution, Food Corporation of India (FCI), is under pressure because of the lack of storage facilities in the country.

FCI stores more than 80-90 million tonnes of grains in a year and it is very difficult for them to make proper arrangements for storing such a huge quantity of grains.

"The problem is further aggravated by the lack of cooperation from states, as they don't lift grains from FCI godowns on time," Thomas said.

Asked about the crop outlook for the current year, he said, "Definitely, it would be better than last year and we are in the process of making an assessment and the final figures would be available soon."