Govt aims to earn $600 mn by exporting 2-mt wheat: FCI
12 Sep 2013 10:43 PM GMT
Food Corporation of India (FCI) on Wednesday said that the government aims to earn $600 million by exporting 2 million tonne wheat stored in its godowns.
The Cabinet Committee on Economic Affairs (CCEA) had last month permitted export of additional 2 million tonnes wheat via state trading firms such as STC, PEC and MMTC to clear surplus stocks with the Food Corporation of India and had fixed the floor price of $300 a tonne.
'FCI will export two million tonnes of wheat in the coming months to earn valuable foreign exchange of nearly $600 million for the country,' an official release said.
A sub-committee, headed by Food Corporation of India chairman and managing director C Viswanath, will meet soon to finalise formalities for floating global tenders, it said.
Last year, government had earned $1.4 billion from export of 4.2 million tonne wheat by PSUs. Indian wheat had fetched an average price of $311.38 per tonne.
'The acceptability of Indian wheat in the international market is an encouraging sign as evident from the sale last year. Therefore, another 2 million tonnes of wheat will be offered to the foreign buyers,' a senior Food Corporation of India officer said.
'We have the stocks. It is also the right time to enter the international market,' he added.
After the tenders are floated, an Empowered Committee, headed by the commerce secretary, will approve the successful bidders. The foreign buyers of Indian wheat in the international market are mainly from South Korea, Bangladesh and Ethiopia.
According to the Cabinet Committee on Economic Affairsdecision, the export of 2 million tonne wheat this year will have to be completed by 31 March, 2014.
As on 1 September, foodgrain stock with FCI was 58.93 million tonne. Of this, wheat was 38.3 million tonne and rice 20.5 million tonne. Food Corporation of India is the government's nodal agency for procurement and distribution of foodgrains.
The Cabinet Committee on Economic Affairs (CCEA) had last month permitted export of additional 2 million tonnes wheat via state trading firms such as STC, PEC and MMTC to clear surplus stocks with the Food Corporation of India and had fixed the floor price of $300 a tonne.
'FCI will export two million tonnes of wheat in the coming months to earn valuable foreign exchange of nearly $600 million for the country,' an official release said.
A sub-committee, headed by Food Corporation of India chairman and managing director C Viswanath, will meet soon to finalise formalities for floating global tenders, it said.
Last year, government had earned $1.4 billion from export of 4.2 million tonne wheat by PSUs. Indian wheat had fetched an average price of $311.38 per tonne.
'The acceptability of Indian wheat in the international market is an encouraging sign as evident from the sale last year. Therefore, another 2 million tonnes of wheat will be offered to the foreign buyers,' a senior Food Corporation of India officer said.
'We have the stocks. It is also the right time to enter the international market,' he added.
After the tenders are floated, an Empowered Committee, headed by the commerce secretary, will approve the successful bidders. The foreign buyers of Indian wheat in the international market are mainly from South Korea, Bangladesh and Ethiopia.
According to the Cabinet Committee on Economic Affairsdecision, the export of 2 million tonne wheat this year will have to be completed by 31 March, 2014.
As on 1 September, foodgrain stock with FCI was 58.93 million tonne. Of this, wheat was 38.3 million tonne and rice 20.5 million tonne. Food Corporation of India is the government's nodal agency for procurement and distribution of foodgrains.
Next Story
