 "FCI to export 2 millon tonne wheat to realize $600 mn")
The public sector grain procurement agency the Food Corporation of India (FCI) will soon float an international tender for selling two million tonnes wheat to realize $600 million in coming months.
The proposal to export the wheat from the stocks of the central pool of FCI was approved by the Cabinet Committee on Economic Affairs (CCEA) last month. A sub-committee, headed by FCI Chairman and Managing Director C Viswanath, will meet soon to finalise the formalities for floating international tenders.
Wheat export of 4.2 million tonnes undertaken by FCI last year had fetched $1.4 billion in the international market.
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“The acceptability of Indian wheat in the international market is an encouraging sign as evident from the sale last year.
Therefore, another 2 million tonnes of wheat will be offered to the foreign buyers,” said a senior officer of FCI.
“We have the stocks. It is also the right time to enter the international market,” he added.
After the tenders are floated, an Empowered Committee, headed by the Commerce Secretary, will approve the successful bidders. The foreign buyers of Indian wheat in the international market are mainly from South Korea, Bangladesh and Ethiopia.
In the exports of 4.2 million tonnes completed last month, the Indian wheat had fetched an average price of $311.38 per tonne.
According to the CCEA decision, the exports of the 2 million tonnes of wheat this year will have to be completed by 31st March, 2014.
The FCI will undertake the exports through the State Trading Corporation, PEC and Metals and Minerals Trading Corporation of India, which will float the tenders.
| Stock report (million tonnes) | ||
| Particulars | Rice | Wheat |
| Requirements | ||
| Buffer norms (as on Oct 1) | 5.2 | 11 |
| Strategic reserves (as on Oct 1) | 2 | 3 |
| Total | 7.2 | 14 |
| Availability | ||
| Stocks in central pool (as on Sept 1) | 20.57 | 38.36 |