New Delhi, July 4 (IANS) Facing shortage of storage space, the government has decided to export two million tonnes of wheat at a base price of $228 per tonne, said union Home Minister P. Chidambaram Wednesday.
According to the minister, the Cabinet Committee on Economic Affairs (CCEA) Tuesday approved the export of two million tonnes of wheat from the Central Pool stocks at a floor price of $228 (approximately Rs.12,400) per tonne.
"This will relieve storage space for the kharif season," he said.
The CCEA, he added, had decided to set up an Empowered Committee under the chairmanship of the commerce secretary.
The Empowered Committee will be authorised to decide the modalities of export like determining the export price from tender to tender and other operational issues.
The exports will be done by central agencies like the State Trading Corporation (STC), MMTC and PEC and have to be completed by March 31, 2013.
The proposal for wheat exports of two million tonnes is one amongst a series of actions already initiated by the department of food and public distribution for managing the over-flowing wheat stocks in the central pool.
The department has, with the approval of the EGOM (empowered group of ministers), already allocated additional five million tonnes of foodgrain to BPL population and also allowed sale under Open Market Sale Scheme (OMSS) of three million tonnes of wheat.
The decision of the CCEA to allow two million tonnes of wheat exports besides the aforesaid other actions taken by the Department is going to help in disposing of the excess wheat stocks from the central pool so as to make space available for the forthcoming kharif crop of paddy and then wheat crop in the rabi Season, said Chidambaram.