Wheat product exports to be banned: report
13 Jan 2011
As part of its efforts to tame spiralling food prices that have increased pressure on an embattled ruling Congress party, the government may ban wheat product exports, a media report said.
India currently allows up to 650,000 tonnes of wheat product exports. This policy is supposed to be valid until 31 March.
Prime Minister Manmohan Singh is expected to announce measures including banning the export of wheat products and removing essential commodities from the futures market after a cabinet meeting today, the Press Trust of India reported without naming its sources.
Traders say banning exports of wheat products would not help tame food inflation, as the country has huge wheat stocks. On 1 January, India's wheat stocks were at 21.5 million tonnes against a target of 8.2 million tonnes.
Analysts say food inflation is largely stoked by soaring vegetable and dairy prices.
''Not much is happening on the wheat product export front as inconsistency in its export policy hold us from entering into long-term export contracts,'' Veena Sharma, secretary of the Roller Flour Millers Federation of India, told Reuters.