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Wheat exports from Government stocks have picked up even as shipments by private trade have slowed down on rise in prices and thin market arrivals.
Total shipments have crossed three million tonnes since the Government allowed wheat exports in September last year.
Bulk of the shipments has been done by the private trade, so far.
The Government agencies such as PEC Ltd and STC Ltd have issued tenders for about one million tonnes for exports and have shipped over five lakh tonnes, so far.
“We expect the tendering process for two million tonnes to be complete by December on rise in demand,” senior official at PEC said.
In July, the Government had approved exports of two million tonnes from the Central stocks. The PEC official is hopeful that exports will cross two million tonnes on rising global demand for Indian wheat.
A shortfall in output on drought in the US, Russia, Ukraine and Australia has triggered global interest in the Indian wheat this year.
India had produced an all-time high 93.9 mt wheat in the 2011-12 season and the Government agencies are currently holding stocks of over 40 mt.
As of October 1, the Central pool stocks stood at 43.15 mt more than three times the buffer and strategic reserve requirement of 14 mt.
The private trade, which has seen a slowdown in exports in recent weeks on decline in market arrivals, has been demanding access to the Government stocks to encash the rising demand.
Such a move would help the Government to get rid of the old stocks.
Moreover, the late revival in monsoons has brightened the rabi prospects.
Bulk of the Indian exports so far have been destined to the Far Eastern nations such as Korea, Taiwan and neighbouring countries such as Bangladesh, Sri Lanka and Yemen.
Countries such as Iran and Malaysia are also looking to import the Indian wheat on long-term basis.
> vishwanath.kulkarni@thehindu.co.in
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