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The wheat industry has asked for government intervention to boost its export. Despite this being a wheat-surplus country, export has been “negligible” till now, it has said, mainly due to price and quality issues.
Wheat export in April-May last year was $475 million. It came down to $367 mn in the same period this year and has been inconsequential after this. It wants the Centre to set up a Grain Board, to fix standards, fix prices and other helpful measures. Speaking to reporters after announcing a two-day international wheat seminar, to begin here on Tuesday, Ratan Gupta, member of the Wheat Products Promotion Society, said despite being the second largest producer in the world at 95 million tonnes (mt) annually, India could export only around seven mt in the previous crop season, due to prices here being more than abroad.
Gupta said the country needed technology to improve soil conditions, fertiliser usage, identifying the right seeds and the right kind of segregation to meet global standards, as well as price parity.
N K Mehta, senior vice-president, All India Bread Manufacturers’ Association and senior general manager (franchising) Modern Food division, Hindustan Unilever, said price, quality, storage and segregation of particular types required for export were the major challenges.
Indian standard wheat quotes globally at Rs 16,500 a tonne, he said, while the made-in-India price is Rs 17,500-18,000 a tonne. He said Canada exported 25 mt yearly and tested every grain, in a clearly laid structure. In every 1,000 tonnes it takes two kg at random and does checks on 21 parameters. Ukraine, the next big emerging force, recently set up a similar monitoring Board. “It is high time we consider setting up one,” he said.
Separately at the meet, the Roller Flour Millers’ Federation of India termed the Public Distribution System (PDS) a “cancer”. Hitesh Chandak, its president, said: “Only around 40 per cent of people are getting benefited through PDS. The rest is getting diverted to the open market.”
In the open market, he said, wheat was being quoted at Rs 18-19 a kg, compared to Rs 2 a kg in the PDS.
Mehta of the All India Bread Manufacturers' Association suggested the government give atta (flour) through the PDS, instead of wheat.
"Atta can be identified by way of a flour package, which is not possible in wheat,” he said.
