In a bid to free up storage space in choked state-run warehouses, India’s Cabinet Committee on Economic Affairs (CCEA) has allowed exports of 2 million tonnes of wheat at a floor price of $228 per tonne. The exports will be done by Central public sector undertakings (CPSUs) of Department of Commerce i.e. STC, MMTC, PEC and these have to be completed by March 31, 2013.
Meanwhile, to oversee the export of wheat from the country, CCEA has decided to set up an Empowered Committee under the Chairmanship of Commerce Secretary. The Committee will also be authorized to decide the modalities of export such as determining the export price from tender to tender and other operational issues.
The said decision of the CCEA to allow 2 million tonnes of wheat exports will help the government in disposing of the excess wheat stocks from the Central Pool so as to make space available for the forthcoming kharif crop of paddy and then wheat crop in the Rabi Season.
Besides, the Department has already allocated additional 5 million tonnes of food-grains to below poverty line (BPL) population and also allowed sale under Open Market Sale Scheme (OMSS) of 3 million tonnes of wheat.