Grain exporters aim for 4 mn.t. target

The All India Grain Exporters Association (AIGEA) a newly formed body of non-government grain exporters, aims to export 4 million tones grain this year, against last year's 3 million tones. The major destinations include west Asia, west Africa and south-east Asia.

AIGEA represents exporters of wheat, coarse grains, rice, pulses, lentils and sugar. Some leading private sector grain exporters, such as Adani, Allanasons, Sara International, Satnam Overseas, Emmsons International, Ram Kishan Bishan Swaroop and Ruchi Soya Industries, are among the founder members of this body. AIGEA members combined account for over 60 per cent of private sector grain exports.

Over the last three years, India has exported over 22 million tons of grains, comprising wheat, rice, coarse grains, pulses, etc.

The country has emerged as the second largest exporter of rice and has captured over 4 per cent of the total global wheat trade.

India is likely to export around 6 to 8 million tons of grains in the current year, valued at over $ 900 million.

AIGEA chairman DP Singh said in a press conference today that the government should allow the exporters to purchase grains directly from the mandis and provide subsidy on exports.

He said grain exporters had to buy grains from the Food Corporation of India (FCI) at present. Prices were fixed by the government arbitrarily and had no correlation with the prevailing international trends.

Besides, delays in releasing the grain and backlog for getting railway rakes for exports posed additional problems.

AIGEA had initiated discussions with several state governments to seek their partnership and advice on issues like seed varieties, international grading needs and demand trends in international markets. Some members had already entered into contract farming arrangements in Punjab.

Similar arrangements was being explored in other states which would benefit of farmers, exporters and the exchequer.

AIGEA said the government should prepare a long-term and stable grain export policy. Some of the problems faced currently included variation in prices, frequent changes in documentation requirements and uncertain subsidy structure for exports.