December 1, 2006

 

India eyeing wheat export market again

 

 

India may become a major wheat exporter again within the next few years if the current plan to expand acreage and yields goes as scheduled, Agriculture Secretary Radha Singh said Thursday.

 

In fact, the latest government data shows that exports of wheat have not stopped altogether but dropped to very low levels. According to government figures, wheat exports fell to only 34,262 tonnes between April and July 2006, down from 597,570 tonnes in the year-earlier period.

 

"International wheat prices are extremely remunerative...we are giving a big push to output and response from farmers has been very good," Singh told Dow Jones Newswires.

 

She said attractive local and international prices are encouraging farmers to opt for wheat plantings.

 

"If all goes well, we will start exporting wheat again in a few years," Singh said.

 

India's federal government imported 5.5 million tonnes of wheat over seven months from February this year after the country emerged as a large exporter of the commodity between 2000 and 2005. The change in trade scenario came on the back of low inventories and an output decline in 2006.

 

Singh said government is targeting non-traditional areas in eastern India to expand acreage of wheat in the country.

 

She said a total 138 districts have been identified in the country to boost wheat output.

 

As part of a comprehensive plan to boost wheat output, government is also considering a proposal to subsidise sales of diesel to farmers. Diesel is used to generate electricity for operating pumps to irrigate the farms.