October 3, 2006

India to become a wheat exporter in 3-4 years: IFPRI

Notwithstanding the current uncertainty in the wheat sector, India could end up becoming a wheat exporter in the next three-four years due to focussed attention and higher acreage for the crop, the International Food Policy Research Institute (IFPRI) said.

India would turn a wheat exporter within three to four years as the wheat growers are getting good prices in the international market. This would enthuse them to go for much greater acreage, IFPRI director Ashok Gulati said.

He said the decision to allow private purchase of the wheat-enabled farmers to sell a large chunk outside the government agencies. The latter had seen a low procurement of 9.2 million tonnes this year.

Gulati, however, underplayed the impact of wheat imports after a span a six years and said even during 2005-06, India exported 74,600 tonnes of wheat and two million tonnes during 2004-05 with an export subsidy. India has been exporting wheat for the last seven years barring this year.

Gulati said the market should not be unduly perturbed by temporary scenarios and added it would be desirable to have a clear-cut import and export policy.

The government allowed wheat import of 5.5 million tonnes this year due to less-than-expected-production and aggressive buying by private players in major wheat producing states that had amended their respective APMC Acts.

Gulati said though Punjab, one of the largest wheat growing states, was facing a water shortage, it still had an efficient canal network to maintain high foodgrain production.

The IFPRI Asia chief said efforts should also be made to enhance the production in non-traditional wheat states like West Bengal and Bihar.

Gulati also suggested the opening up of Indian borders and sending wheat to neighbouring countries through the Afghanistan route.