On receiving good response to the recent schemes announced to offload additional grains in order to ease storage crisis, the Government has decided that it will go slow on export of 2 million tonnes of wheat from its godowns. However, it has made clear that it will not abandon the plan to export wheat from its godowns.
The Government is currently facing with the problem of plenty as against the storing capacity of 64 million tonnes of foodgrains, the godowns are overloaded with over 82 million tonnes. In order to clear surplus stock, the Government had recently permitted 2 million tonnes of wheat export from the central pool on fears that the grains may damage due to lack of storage facilities during monsoon. It allowed wheat exports via state trade agencies STC, MMTC and PEC with floor price of $228 a tonne. Besides, it has also allocated an additional 3 million tonnes of wheat in the open market and 5 million tonnes of foodgrains through ration shops.
Under the open market sale scheme (OMSS), response for wheat has been good and the offtake of additional foodgrains from state government for PDS is also improving. The government will be allocating additional quantities if offtake further improves and will be looking to export only when it gets good price. So far since the government lifted the export ban on the commodity in September 2011, the country has shipped 1.8 million tonnes of wheat through private trade.
In the last few years due to bumper procurement and production, India, the world's second biggest wheat producer, is facing storage crisis. The country had harvested a record 90.75 million tonnes in the 2011-12 crop year (July-June).
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