To make storage space for fresh crop, the Government on Tuesday cleared the export of two million tonnes of wheat from its buffer stock.
The decision comes in the wake of reports of rotting food grain as Government go-downs overflow with a record 82 million tonnes of rice and wheat against the storage capacity of only 64 million tonnes.
Speaking to reporters after the meeting of the Cabinet Committee on Economic Affairs (CCEA), the Union Food Minister, Mr K.V. Thomas, said “CCEA has approved export of two million tonnes of wheat from Government stock with floor price of $228 (about Rs 12,400) a tonne.”
It was also decided to immediately allow 90,000 tonnes of wheat export from the bids received by the Government-run trading company, STC. For the remaining quantity, the CCEA had decided to set up a Committee headed by the Commerce Secretary.
Although the Food Minister said that there was no subsidy or losses in wheat exports, sources said the export of 2 million tonnes of wheat would involve an outgo of Rs 1,263 crore.
India, the world’s second largest wheat producer, had harvested 90.23 million tonne in the 2011-12 crop year (July-June). This has lead to record procurement of nearly 38 million tonnes so far this year.
In September last year, wheat exports through private trade had been allowed. Since then about 1.3 million tonnes have been shipped.