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Finance minister to clear confusion over wheat exports

28 Jul 2011 Evaluate

In the course of confusion over lifting of ban on wheat exports, Finance Minister Pranab Mukherjee on July 27 said the issue was being discussed with the Commerce Ministry and the matter would be sorted out soon. The confusion occurred earlier this month when Agriculture Minister Sharad Pawar, said that the government has decided to lift the ban on wheat exports. After this statement Food and Commerce Ministers explained that the decision on the wheat export would be taken at the next meeting on the empowered group of ministers (EGoM) on food.  On this differences between Agriculture and commerce ministries, Finance minister said, 'We are consulting with the Commerce Ministry and we will be able to sort it out.' 

Earlier in 2007, government had imposed ban on wheat exports, in order to increase the supply of wheat in domestic market. In the last meeting of EGoM on July 11, the proposal was given in principle approval. However, the decision was delayed in the wake of moderating prices of wheat in global market. With this further announcement of wheat export by the Indian government would again reduce prices wheat in the global market.

Recently, the commerce ministry issued a notification on allowing one million tonne export of non basmati rice, however it has not issued any such orders on wheat exports. Currently, the government’s stocks are full with 37.8 million tonnes of wheat because of bumper production. As per the most recent, estimates from Agriculture Ministry, the India’s total wheat output is expected to be 85.93 million in 2010-11 crop year i.e. July to June from 80.80 million tonne in the 2009-10.

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