Sunday 12 January 2014

State Cos Export 3 Lakh Tonnes Of Wheat From Fci Godowns

State-owned trading firms have so far exported about 3 lakh tonnes of wheat from FCI godowns out of 20 lakh tonnes allowed by the government. “About 3 lakh tonnes of wheat has been shipped so far,” a senior government official said.



In August last year, the Cabinet Committee on Economic Affairs (CCEA) had allowed 20 lakh tonnes of wheat exports till June 2014. The government decided to export wheat as the Food Corporation of India (FCI) had surplus stocks.



According to the official, State Trading Corporation of India, PEC and MMTC have so far floated tenders to export about 17 lakh tonnes of wheat, of which 7 lakh tonnes have been awarded.



The government had lowered the floor price for wheat exports to $260 per tonne from $300 per tonne. The US, Canada and Australia were selling the same quality of wheat in the range of $270-275 a tonne, he said. The FCI expects to earn more than Rs 3,400 crore from wheat exports in the current financial year.



“With heavy snowfall in USA and Canada, there has been a logistic jam in these countries, so in coming days, prices quoted for India wheat are likely to go up,” a trader said.



So far, the average price at which Indian wheat has been exported is about $281 per tonne, with the highest at $289.9 per tonne in November last year for shipment from Krishnapatnam port.



The government had allowed export of 4.5 million tonnes of wheat from FCI godowns during the previous financial year, of which PSUs sold about 4.2 million tonnes at an average price of $311.38 per tonne for over Rs 7,000 crore.



Recently, a Parliamentary committee had suggested there is an urgent need to reduce the food subsidy burden and recommended that the government should fix an upper limit for foodgrain storage.FCI is the government’s nodal agency for procurement and distribution of foodgrains.


Source:- thehindubusinessline.com





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