FCI to export additional 2.5 million tonnes of wheat

The government has allowed state-run procurer Food Corporation of India (FCI) to export an additional 2.5 million tones of wheat from its central pool even as it increased the procurement price of wheat to Rs1,350 per quintal.

The cabinet committee on economic affairs (CCEA) today approved the export of additional wheat from the central pool stocks of the FCI at costs determined by individual tenders subject to the floor price of $300 per metric tonne, a government release said today.

FCI will export wheat through central public sector undertakings of the department of commerce, such as STC, MMTC and PEC as was done for export of 2 million tonnes of wheat earlier during the fiscal.

These exports are to be completed within the first quarter of the 2014 fiscal, ie, by June 2013.

The government will reimburse FCI's losses on account of the exports taking the difference between the economic cost to FCI and its realisation from the exporting CPSUs after deduction of actual port expenses and their commission at the rate of 2.5 per cent.

The exports would make available more storage space for wheat at FCIs godowns, thereby easing the problem of storage being faced by the corporation.