December 16, 2003
India Wheat Export Prices Up
The Indian government has increased ex-granary prices for exporters by a massive Rs 500 per ton for the January-March quarter. This would translate to an additional burden of Rs 1000 million (US$21.9 million) on India's wheat traders with pending export contracts.
With this latest move of the Indian government, ex-granary prices for wheat export have for the first time since the current regime was put in place in November 2000, gone above the ration shop rates for Above the Poverty Line (APL) families.
The new crop harvested in 2003 will be available to the exporters from January 1 onwards for Rs 6,525 per ton, up from Rs 6,025 per ton. The 2002 crop will be sold at Rs 6,225 per ton against Rs 5,725 per ton in the current quarter. The new ex-granary price for 2000 and 2001 crops is Rs 6,085 a ton.
The current APL price under ration shop system is Rs 6,100 per ton.
"Even though no fresh wheat allocations are being made to exporters, this is not an academic hike, it means hard cash for the exchequer as all exporters with pending contracts will have to pay an additional Rs 500 per ton", a Food Ministry official clarified.