December 2, 2010

India unlikely to export wheat on insufficient surplus

India may not allow exports of wheat in the near future as it aims to construct a bigger grain buffer, due to the country having an insufficient surplus, a senior government official said.

"Stocks are higher but not to the extent whereby we can export," Siraj Hussain, chairman and managing director of Food Corp. of India, said.

"India does not have surplus to undertake large exports," he added.

Hussain said the government has set a goal of constructing an additional 15 million tonnes of storage capacity to check huge losses of product because of insufficient facilities.

Hussain said any decision to free grain exports would only be taken after the proposed food security act comes into law.

The act plans to give cheap food grains to the poor from India's massive stockpiles.

India has faced rising calls not to allow overseas sales of wheat from the world's second-largest grain producer as its stocks are rotting.

In October, the National Advisory Council, headed by Sonia Gandhi, recommended increasing food subsidies, a plan which, if implemented, could widen the budget deficit but secure voter support for the ruling party.