Government allows state-run firms to export wheat

With the monsoon reviving after a dry spell in the first few weeks of June, the government has now allowed state-run firms to export 900,000 tonnes of wheat. The government also allowed private trade to export another 650,000 tonnes of wheat products.

State-run trading firms MMTC Ltd, STC Ltd and PEC Ltd, will be allowed to export wheat till March next year, Directorate General of Foreign Trade said on Friday, adding, exporters will not be eligible for any subsidy.

Indian wheat would cost more than $240 a tonne in Southeast Asia and the Middle East - $20-30 more than Black Sea and US wheat. This would make exports outside the neighbouring SAARC countries unviable.

Wheat product sales, on the other hand, looks viable for Roller Flour Mills Federation of India, but they want the government to detail how it would monitor exports.

India, however, is nursing a huge accumulated stock after a bumper harvest last year and had plans to export wheat once the stocks rose further.

The government, however, is evaluating the progress of the monsoon, which is expected to be around 93 per cent of the long-term average.