February 12, 2002

EXPORT OF WHEAT AND RICE FROM THE CENTRAL POOL SEVERAL NEW MEASURES ANNOUNCED

    India would be a permanent exporter of wheat and rice. This was stated by Shri Shanta Kumar, Union Minister of Consumer Affairs, Food & Public Distribution while replying to a suggestion made by some exporters that there should be a Long Term Grain Export Policy. A meeting to discuss various matters connected with the export of wheat and rice was held here today under the chairmanship of the Minister.

    Since November, 2000, when the Central Government decided to permit FCI to make available wheat from the Central Pool for the purpose of export, 42.96 lakh tonnes of wheat has been exported so far. With effect from the current financial year Food Corporation of India (FCI) has also been making available rice for the purpose of export. The quantity lifted so far is 14.03 lakh tonnes.

    Shri Shanta Kumar emphasized the need to boost exports further, keeping in view the huge stocks of food grains available in the Central Pool. As on January 1, 2002, 324.15 lakh tonnes of wheat and 256.17 lakh tonnes of rice were available in the Central Pool as against the buffer stocking norms of 84 lakh tonnes of wheat and 84 lakh tonnes of rice. If the present trend of procurement and off take continues, the stocks of wheat and rice available as on January 1, 2003 are estimated to be 675 lakh tonnes as against 580.32 lakh tonnes as on January 1, 2002.

    The following important decisions were taken in the meeting :

• The export price of wheat and rice will now be announced by the Government for a period of three months with an additional month given for lifting of food grain, and such export prices will be announced 45 days in advance, before the commencement of the concerned quarter during which the price so announced will remain valid. This will enable the exporters to conduct international negotiations for exports under a stable price regime.
• The minimum quantity of rice to be lifted by an exporter, which was fixed at 5000 MTs earlier, will be reduced to 2000 MTs in order to enable the larger number of small exporters to participate in rice export. Exporters can now lift rice in lots of 500 MTs or their multiples from more than one godown within a district.
• The present policy in respect of export of rice exempts nominated PSUs and other Agencies, namely, STC, MMTC, PEC, NAFED, NCCF and MARKFED, from providing the bank guarantee, and stipulates that these PSUs/Agencies can undertake exports themselves or through star trading houses. Now all Government recognised export houses, trading house, star trading houses and super-star trading houses will be entitled to undertake export through these nominated PSUs and other agencies in order to broad-base the participation of exporters.
• A Standing Committee will be set up under the Chairmanship of Secretary (F&PD), Government of India, with Senior Officers of the Ministry and FCI, to hear the problems of the exporters regularly and take immediate decisions to resolve their problems. The Standing Committee will be appropriately empowered to take instant decisions. This will take care of the day-to-day problems of the exporters.
• Exporters, who had opened letters of credit (LC) in favour of FCI before January 17, 2002, will be governed by the old instructions as prevalent before the Government order issued on January 17, 2002.
• Government will consider allowing exporters to lift paddy from the Central Pool so that exporters can convert paddy into rice according to the specifications in the context of their export orders.