The Cabinet Committee on Economic Affairs (CCEA) has approved export of two million tonnes of wheat from the central pool stocks and has fixed the floor price at $228 (about Rs12400) per tonne.
The CCEA has decided to set up an empowered committee headed by the commerce secretary to decide the modalities of export, such as determining the export price from tender to tender and other operational issues.
The exports will be made by central public sector undertakings of the department of commerce, such as the State Trading Corporation (STC), Minerals and Metals Trading Corporation (MMTC), PEC (formerly known as Projects and Equipment Corporation of India Limited).
Exports will be completed by the end of the current financial year, ie, 31 March 2013, an official release said today.
Wheat exports is one of the measures being undertaken by the Department of Food and Pubic Distribution for effectively managing the huge stocks with the government.
The department has already allocated additional 5 million tonnes of foodgrains for distribution among BPL population and also allowed open market sale scheme (OMSS) for 3 million tonnes of wheat.
The disposal of a total of 7 million tonnes of wheat stock through these measures is expected to make space available for the forthcoming kharif crop of paddy and the wheat crop in the rabi season.