Grain exporters upset over price hike

The All India Grain Exporters Association (AIGEA) has criticised the government's move to hike the price of wheat and rice supplied to exporters by the Food Corporation of India (FCI).

This would disrupt grain exports, the association warned in a press statement issued today.

The price of wheat has been raised by Rs 500 a tonne and that of rice by Rs 300 a tonne for the January to March, 2004 quarter.

AIGEA has expressed concern that new prices may be applied to stock-release orders issued in June-July 2003 and paid for months ago.

If the higher price was applied retrospectively, it would make export deals unviable as the increased price would have to be absorbed by the exporters in deals where LCs had already been opened.