Foodgrain exports from Vizag dip

Fall of 44% seen this fiscal due to non-availability of wagons

The non-availability of wagons for the movement of wheat and rice from north India to Visakhapatnam has resulted in food grains exports from Visakhapatnam port plummeting by 44 per cent this fiscal.

Several private and public sector export companies like MMTC, ITC, Cargil India, Punjab Markfed have been bringing food grains on a large scale to the Vizag port.

During the last fiscal till February 10, the port exported 19.16 lakh tonnes of foodgrains (wheat 14.66 lakh tonne, rice 4.5 lakh tonne), whereas it has handled only 10.73 lakh tonne of foodgrains (wheat 10.35 lakh tonne, rice 38,000 tonne) in the corresponding period this fiscal, thus registering a shortfall of 8.43 lakh tonne.

Traditionally, foodgrain exporters have brought wheat and rice mostly from Punjab to the Vizag port for exports, thanks to the good facilities for foodgrain exports at the port.

Apart from the facilities, the port has been offering cheap handling costs and prompt berthing for ships. Due to these facilities, exporters have been bringing huge quantities of wheat from Punjab to Vizag to meet their export needs.

Since the beginning of the current fiscal, foodgrain exporters have suffered with lack of sufficient wagons from the railways. Due to this, foodgrains exports from Vizag port was affected drastically, Dattu Raju, traffic manager of Visakhapatnam port, told Business Standard.

"The state-owned MMTC Limited has exported about six lakh tonne of wheat and rice during the last fiscal. During the current year, MMTC's foodgrains exports also come down significantly. We have written several letters to the government for allotment of more rakes from Punjab area to Vizag. Visakhapatnam port also represented this case to the government, but all our efforts went futile," Suraj Modi, general manager of MMTC, told Business Standard.

However, foodgrain exporters including MMTC are expecting a significant growth in rice exports during the next fiscal because of a new foodgrains export policy.

At present, exporters are dependent on the Food Corporation of India for allotment of stocks for exports, while in the new foodgrain export policy, the government has given a free hand to exporters for procurement from local markets.