Question : ALLOCATION FOR EXPORT

(a) whether the Government proposes to allocate/release five million tonnes of wheat from the Central pool for export during the current financial year;

(b) if so, the details thereof indicating its price and the countries where it is proposed to be exported along with its likely impact on the prices in the domestic market and the steps taken to ensure its adequate supply at fair price in the country;

(c) whether the Government also proposes to export the said quantity of wheat through private firms/traders; and

(d) if so, the details thereof and the reasons therefor?

MINISTER OF STATE (INDEPENDENT CHARGE) FOR CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (PROF. K.V. THOMAS)

(a) & (b): Government has allowed export of 45 lakh tons of surplus stocks of wheat from Central Pool Stocks of Food Corporation of India (FCI) through the Central Public Sector Undertakings (CPSUs) of the Department of Commerce to be carried out by 30-06-2013. These exports are done through competitive global tenders with the base price fixed at US $ 300 per ton Free on Board(FOB) and exporters are free to take the tendered quantity to the countries of their choice. The weighted average price for the tenders approved so far is US $ 314.01 per ton.

At present there are adequate stocks of wheat in Central Pool and the Government has already approved sale of 100 lakh tons of wheat under Open Market Sale Scheme (OMSS) during the year 2012-13. The Government has approved additional allocation of 26.96 lakh tons and 43.17 lakh tons for the Below Poverty Line (BPL) and Above Poverty Line (APL) families over and above the normal allocations for the current year 2012-13. In view of these measures the export of surplus wheat is not likely to have any impact on the prices in the domestic market.

(c) & (d): The Government, on 07-03-2013 has approved ‘in principle’ export of upto 50 lakh tons of wheat from Central Pool Stocks through private sector. This is done in view of the surplus stocks of wheat in the FCI godowns in Punjab and Haryana, constraints in long term storage and prospects of good Rabi crop this year.