The government should give a serious thought to allowing exports of wheat, rice and sugar looking at bumper production and comfortable stock position, Agriculture Minister Sharad Pawar said on Wednesday.
On allowing sugar exports, he said the EGoM is likely to consider the issue this week.
“This year it (sugar export) was taken seriously by the govt to allow export of half a million tonnes. And quota allocation was also made, but decision was kept on hold.
“If we have to give a second thought, we have to call a meeting of Empowered Group of Ministers (GoM). And I think that the Food Ministers have suggested calling a meeting of the GoM sometime in this week and one of the agendas would be reasons to allow sugar export. So that decision would be taken in the GoM meeting probably this week,” he said.
Sugar output is pegged at 24.5 million tonnes in 2010-11 (October-September) against 19 million tonnes in the previous year. The annual demand is seen at 22 million tonnes and India has an opening stock of 5 million tonnes.
The minister also noted that wheat production is likely to exceed the current estimate by 2.5 million tonnes to touch 84 million tonnes due to conducive weather conditions.
“I cannot support anything. I said that our stock position is good whether it is rice, whether it is wheat or whether it is sugar. I think this is the time when government has to give a serious thought and allow certain exports,” he said when asked if he supports wheat, rice and sugar exports.
Food Corporation of India has 47 million tonnes of wheat and rice in its godowns against the buffer norm of 25 million tonnes as on January 1.
Pawar favoured wheat exports to cash in on high prices and short supply in global markets. There have been reports that China wheat crop might decline due to drought conditions.
“We have ample buffer stock of wheat and this year’s crop condition is extremely good…I am sure the next meeting of Empowered Group of Ministers (EGOM) this week will give a serious thought to it,” he told reporters.
The exports of wheat and non-basmati rice were banned in February 2007 and April 2008, respectively, to control high inflation. Recently, exports of 1.5 lakh tonnes of three superior varieties of non-basmati rice was allowed.
On wheat crop conditions, Pawar said: “As on today the weather situation is quite favourable. Last year our production was somewhat near to 81 million tonne. Looks like that we may reach to 84 million tonne (this year) provided, the good weather situation continues”.
The Ministry had recently pegged wheat production of the country, the world’s second largest producer, at record 81.47 million tonnes in 2010-11 crop year (July-June) against 80.71 million tonnes in the previous year.
Rice output is estimated to rise to 94 million tonnes this year from 89 million tonnes.