SME Times News Bureau | 27 May, 2011
A clear cut decision on India's wheat and rice exports this season is still in the making even after country’s food minister said no rice and wheat exports are allowed from government stocks.
Union Food Minister K V Thomas said as the country is gearing up to introduce a food security law, we should have enough stocks and any decision on exports will need to be taken on that basis.
India is in the final stages of drafting a Food Security bill that guarantees cheap grains to 70% of the population.
India has maintained a ban on the export of wheat and common grades of rice for the past three years, but overflowing stocks have nudged the government to examine whether to allow some exports.
India is expecting a record food grain output of 235.9 million tons in 2010-11, while its stocks are more than double the requirement for government's welfare programs.
The annual food grain requirement for welfare programs will jump to around 82 million tons from 61 million tons once the new law is implemented.
