November 23, 2011

Under a government-to-government deal between the neighbouring countries, India may allow exports of limited quantities of wheat, rice and edible oil to Bhutan, two food ministry officials said Tuesday (Nov 22).

India will likely send 24,000 tonnes of wheat, 21,000 tonnes of rice, 2,400 tonnes of edible oil and 1,200 tonnes of pulses to Bhutan every year, provided a ministerial panel gives its approval at a meeting scheduled for later Tuesday, the officials said.

Both officials didn't want to be identified.

It wasn't immediately clear whether the food supplies will be done at below-market prices, but the arrangement will likely be exempt from any export ban that India may impose later on any of the items.

India lifted a ban on exports of wheat and common-grade rice in September after two successive bumper crops.