March 31, 2011

India considers allowing wheat exports

The Indian government is considering the approval of wheat exports as the country looks forward to a 2011 record wheat output.

"We are thinking about it (wheat exports). The decision may be taken by April-end or May," according to Minister of State for Agriculture Arun S. Yadav.

The exports would be considered only after ensuring the domestic demand is fully met, he said.

As per the official estimates, the country's wheat production is expected to be a record 81.4 million tonnes this year, as against 80.80 million tonnes in 2009-10 (July-June).

The wheat harvesting has begun in some states and even FCI, the nodal agency for procurement and distribution of foodgrains, has started buying wheat from farmers at a minimum support price (MSP), the minister said.

According to the FCI data, the arrivals of wheat crop so far in Madhya Pradesh and Gujarat have been only 240,000 tonnes as compared to 493,000 tonnes in the year-ago period.

Despite low arrival, the FCI has procured over 157,000 tonnes of wheat largely from Madhya Pradesh and only 40 tonnes from Gujarat so far.

Wheat procurement is likely to begin in Punjab and Haryana from April 1, an FCI official said.

FCI has set a higher procurement target of 26.2 million tonnes for 2011-12 marketing year (April-March), as against 22.51 million tonnes last year.

The bulk of the procurement is being done between April and June. Wheat is grown in Rabi (winter) season.