Export ban on wheat and rice to continue: Prof. K. V. Thomas

Also, Govt to take call on sugar exports only after Diwali

With India, the world's second-biggest food grains producer, going ahead with preservation of grains in order to supply food to consumers at below market prices under a new law, the Food Ministry has ruled out scrapping curbs on exports of wheat, rice and sugar.

In an interaction with newsmen, the Minister of State for Food, Prof. K. V. Thomas, said that the question of allowing exports does not arise considering that the government had to not only feed its own people, but also think about the country's consumption, which was on the rise.

With regard to sugar, Prof. Thomas said that the government had no plans to allow exports before Diwali, which falls in October. In a meeting with industry representatives, who were seeking enhancement of export quota by 1.5 million tonnes, Prof. Thomas said that the government would take a decision on exports only after reviewing the demands of the coming festive season and next year's estimated output.

According to Prof. Thomas, India may need as much as 70 million tonnes of rice and wheat to be supplied at subsidised rates to its citizens once Parliament gives its nod to the Food Security Bill. At present, "the government's grains requirement is around 60 million tonnes for various welfare programmes," he said.

It may be recalled that India banned shipments of wheat in early 2007 and non-Basmati rice in April 2008 to augment domestic supplies in the midst of a global food crisis. According to the Food Corporation of India, the state reserves of foodgrains totalled 65.6 million tonnes on June 1, which is almost triple the quantity five years ago.

On sugar, the Minister said the government was aware of the fact that the industry's estimate of sugar output has time and again been erroneous in recent times, leading to soaring prices at home. According to him, the output estimate for 2010-11 is 24.2 million tonnes, while for 2011-12 it is much higher at 29 million tonnes.

The Minister also firmly ruled out any possibility of relaxing the stock holding limit imposed on millers and traders with the intention of augmenting open market supply, pointing out that doing so in the past had resulted in hoarding and indirect pushing up of prices.