FCI allowed to export 2 million tonnes of wheat

The cabinet committee on economic affairs (CCEA) has approved the export of 2 million tonnes of wheat from the central pool stock of the Food Corporation of India (FCI) during the current financial year.

CCEA has fixed a floor price of $300 per tonne and exports are to be made through the central public sector undertakings such as STC, MMTC and PEC. The procedure for this export will be similar to those adopted for the earlier export of 4.5 million tonnes of wheat.

The exports are to be completed by 31 March 2014.

The CCEA also approved reimbursement of loss by the government to FCI on account of the exports calculated as the difference between the economic cost to FCI and its realisation from the exporting CPSUs after deduction of their commission at the rate of 1. per cent of the FOB price and the actual port expenses.

The export of 2 million tonnes of wheat from the surplus central pool stocks of FCl would make space available for storage of fresh foodgrains in the godowns, thereby helping in the proper management of foodgrain stocks.

Apart from earning additional revenue, FCI would save on the storage and handling cost of about Rs25 crore per one lakh tonne of wheat per year for the quantity exported.