Press Information Bureau

Government of India

Ministry of Commerce & Industry

27-August-2012 16:04 IST

Export of Wheat

The export of agricultural products depends on various factors including availability of surplus over and above the requirement of buffer stock including strategic reserve, concerns of food security, diplomatic/humanitarian considerations, international demand and supply situation, quality standards in the importing countries, varieties traded and price competitiveness, need to balance between remunerative prices to the growers and availability of agricultural products to common man at affordable prices. The Government takes into account the above factors before deciding on the export of agricultural commodities.

Government has allowed export of 73 MTs of pulses during the period of 2012-13 and 80 MTs of pulses during 2013-14 to Maldives on diplomatic basis vide Notification No. 118 (RE-2010)/2009-14 dated 30.5.2012. The above export will be done by MMTC Ltd. To ensure availability of pulses at reasonable rates to common man, the Government has already banned the export of pulses (except Kabuli Chana and 10,000 MT of organic pulses per annum) since 2006. Besides this, import of pulses is allowed at 0% import duty.

In view of the sufficient availability of wheat in domestic market, Government has allowed the export of wheat under Open General License (OGL) without any quantitative or price restriction w.e.f. 9.9.2011. In addition, the Cabinet Committee on Economic Affairs (CCEA) has approved the proposal of Department of Food & Public Distribution in its meeting held on 3.7.2012 for export of 2 million tons of wheat from Central Pool stock of Food Corporation of India (FCI) through Central Public Sector Undertaking (PSUs) of the Department of Commerce.

This information was given by Shri Anand Sharma , Minister Commerce, Industry and Textiles in a written reply in the Lok Sabha today.

DS/GK

Wheat export policy permits unrestricted exports under an Open General Licence and central pool releases via PSUs. The Government balances buffer stock, food security, diplomatic, demand and price factors when regulating agricultural exports. Pulses exports remain largely banned to protect domestic availability with limited diplomatic exceptions and zero import duty for pulses. Wheat exports were authorised under an Open General License without quantitative or price restrictions from 9 September 2011, and the Cabinet Committee approved release of two million tonnes from Central Pool stocks through Central public sector undertakings for export.