Plans to export 1 lakh t wheat to ease storage problem

The government has still not managed to find a solution to the grain storage problem despite mounting a strategy to cut back inventories before the advent of the monsoon in northern India next month.

Officials disclosed that they are awaiting the Cabinet’s approval to liquidate around 1,00,000 tonnes of wheat from the central pool, following the suggestion of a Committee headed by Mr C. Rangarajan, Chairman of the Prime Minister's Economic Advisory Council, to export two million tonnes of wheat at subsidised rates.

The open tender floated by the State Trading Corporation to export from the central pool in the first phase drew around seven bids, with the highest quoted at $228-230 per tonne (around Rs 12,850 per tonne, assuming the current exchange rate against the dollar).

While the bid was found to be around Rs 5,300 a tonne less than the cost incurred in procurement, storing and transportation of the wheat, officials said the Cabinet would discuss the price quoted by various bidders and take a decision on awarding the same.

Source : Exim News Service - NEW DELHI, June 26