Last month, the Cabinet Committee on Economic Affairs (CCEA) had permitted export of additional two million tonnes of wheat via state trading firms to clear surplus stocks in the Food Corporation of India (FCI) and had fixed the floor price of USD 300 a tonne.
"Of two million tonnes, the sub-committee of the Empowered Group set up for the export purpose, has decided to initially permit STC, MMTC and PEC to export 1.5 lakh tones of wheat to test the market and discover the prices," a senior government official said.
These agencies are expected to float multiple global export tenders most probably this week. Each firm would be allowed to tender 50,000 tonnes of wheat for export through Mundra, Kandla and Kakinada ports, the official added.
Presently, Indian wheat is unviable for export at a base price of USD 300 per tonne as global prices are ruling down because international market has excess grain to the tune of 50 million tonnes for this year.
The official further said that the entire 2 million tonnes will not be exported at a stretch and the committee would examine the global price situation and take decision at an appropriate time.
In FY 2012-13, the government had allowed export of 4.5 million tonnes of FCI wheat through PSUs. Of which, 4.24 million tonnes has been exported via 11 ports to 15 countries. The average price at which exports were undertaken was USD 311.38 per tonne.
As on September 1, the FCI had foodgrains stock of 58.93 million tonnes. Of which, wheat was 38.3 million tonnes and rice 20.5 million tonnes.


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