Govt inks deal for wheat export

Govt inks deal for wheat export
REUTERS

NEW DELHI, JAN 22: India said on Saturday it had struck its first wheat export deal in four years by signing an agreement to sell 50,000 tonnes of wheat to Nepal. "We have signed an agreement to export 50,000 tonnes of wheat to Nepal. The deliveries will be made by road in the period between January to March," Consumer Affairs and Public Distribution Minister Shanta Kumar told a news conference.

He did not say at what price the export contract had been finalised. India stopped exporting wheat in 1995-96 (April-March). Therafter, it became a net importer of wheat as global grain prices fell along with domestic output.

"We are also examining the options of exporting wheat to other countries," Kumar said, but did not give details. Food Secretary M D Asthana said the government had asked its ambassadors in the Middle East, Indonesia and some other countries to negotiate wheat deals.

"We have surplus wheat now. We are also considering if we can export wheat to some of these countries on a barter basis or on a deferred payment basis," Asthana said.

Trade officials said the deal was a "welcome step" and India should try to export at low prices, even if there was a loss. "There is no point holding on to excess wheat stocks which are rotting in our warehouses," said Prem Garg, managing director of Shivnathrai Harnarayan, a New Delhi-based grain exporter. "We should be pushing aggressively to sell off our stocks."

Trade officials said domestic wheat prices had come down a little on expectations of a bumper crop and "this was the time to try and export as much as we can".

IMPORT DUTY: India last month slapped a 50 per cent duty on wheat import safter flour millers in southern India started importing wheat, finding it cheaper than transporting grain purchased in the northern states.

"After the imposition of the duty, imports have completely stopped," Kumar said. "The duty has given an incentive to our farmers to grow more wheat."