June 28, 2013
India's FCI exports 4.19 million tonnes wheat
In the past one year, Food Corporation of India (FCI) has exported 4.19 million tonnes of wheat, valued at more than INR7,000 crore (US$1.2 billion).
Due to surplus wheat stock, the government had permitted FCI to export 4.5 million tonnes of the grain in July last year. The deadline for export is June 30, this year.
"The export process has been completed. We have received bids for 4.19 million tonnes, which will fetch more than INR7,000 crore (US$1.2 billion) at an average price of about US$310 per tonne" a senior FCI official said.
Out of 4.19 million tonnes, a major quantity has already been shipped to South Korea, Ethiopia, Bangladesh, Yemen, Thailand and Indonesia, he said.
Maximum wheat has been exported to South Korea at one million tonnes. Small quantities of wheat were also shipped to Vietnam, Malaysia, Philippines and the Middle East.
The official said that no profits were made from exports but indirect saving on carrying and storage cost of wheat to the tune of about INR1,000 crore (US$166 million) was made. The last wheat export tender was floated during third week of June for about 290,000 tonnes but received bids for only 70,000 tonnes, he added.
The FCI official said good price for Indian wheat was received in line with Australian soft wheat, considered as the best in the world. "There is greater acceptability of our wheat in the global market now," he added.
The official, however, observed that the FCI could have secured higher price if handling process was fully mechanised. The FCI is currently handling 77 million tonnes of food grains, of which 4.43 million tonnes is wheat.