The Hindu Business Line : Foodgrain exports to continue

EXPORT of foodgrain is here to stay and the Government will continue to explore newer markets in the global area, a Union Food Ministry official said on Friday.

"There are bottlenecks in foodgrain exports. It is being attended to with the help of State agencies and other bodies involved in exports," Mr Sandeep Khanna, Joint Secretary in the Ministry of Food, said addressing Grain Asia 2004.

Later, on the sidelines of the conference, he said the Government would decide on fresh allocation for foodgrain exports after reviewing the current production and stock situation.

"We are reviewing the situation and a decision will be taken," he said.

A decision is likely to be taken by the month-end.

Currently, the Government has stopped allocation of foodgrains for exports in view of low stocks and inadequate availability of railway wagons. "The situation as far as railway wagons are concerned is improving," he said.

The Government, during the second half of last year, suspended allocation of rice for exports in view of pending orders due to inadequate availability of railway wagons. Later, wheat allocation was also suspended as the buffer stock declined.

As on December 31, 2003 the foodgrain stocks, wheat and rice, had declined to 25.44 million tonnes (mt) as against 59.54 mt the previous year. Of this, wheat stocks make up around 16 mt and rice the rest.

While exports were allowed in 2000 mainly since stocks mounted over 60 mt, last year production was hit by drought. Exports were made through allocations from the Food Corporation of India (FCI) stocks.

Prof Abhijit Sen, who headed the high-level panel on long-term policy for foodgrains, said though foodgrain output in the country was set to rise this year, it would be less in terms of GDP as compared to 1996 or 1997.

"We also have to look into another aspect where per hectare yields are not rising and costs are not coming down," he said and added that rise in yield was practically zero in the last few years.

Mr D.P. Singh, All-India Grain Exporters Association, said that with freight charges rising, the country's grains could find market in West Asia, South Asia and East Africa.

Brig Anil Adalakha, Executive Director, All-India Rice Exporters Association, said rice exports during April-September 2003 were a meagre 2.83 lakh tonnes in view of the Government's decision to suspend exports. During 2002-03, exports were 43.4 lakh tonnes.

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