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India Could Suspend Wheat Exports

India Could Suspend Wheat Exports

24 March 2014

INDIA - India might suspend exports of wheat even without achieving the scheduled target of 2 million tonnes due to fears of crop damage from the recent hailstorms across the country.

"The decision is underway. While the Ministry of Food has already taken final decision in this regards, it will communicate to the public sector grain procurement agency the Food Corporation of India (FCI) soon," an informed source said.

Business Standard reports, India has already accepted bids for 1.40 million tonnes of wheat exports so far this year out of the 2 million tonnes target set by the Food Ministry in August last year.

The target was set to be achieved by June 2014 to earn Rs 3,400 crore from wheat exports at an average price of $300 a tonne, similar to last year's realisation. India's wheat export was recorded at over 4 million tonnes last year.

But, because of price fall in global markets, the tenders including PEC and MMTC received poor response.

Consequently, importers negotiated bid price up to $260 a tonne for some lots. FCI is a facilitator of wheat supply to these public sector grain trading agencies.

Sources said that proper assessment of the crop damage is yet to bedone. Hence, the government decided to suspend wheat exports temporarily. Incase of insignificant crop damage, exports can be opened to meet the target, he added.

Wheat, a 100 per cent rabi crop, is sown in India between October and December for harvesting between March and May.

TheCropSite News Desk



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