The government had allowed export of 10 lakh kg of wheat this year with a view to reduce overflowing stocks following the record 73 million tonnes production.

However, only 500 tonnes of wheat has been registered for exports with the Agricultural and Processed Food Export Development Authority (APEDA), the agency nominated for registering export contracts. ``We will have no problem even if we are unable to export the allotted quantity,'' Barnala said.

A major reason for exports not taking off was Indian wheat price being quoted much higher than global wheat prices.

While wheat is imported at around 120-140 dollars a tonne into the country, Indian wheat costs 190 dollars a tonne when it reaches the ports.

The prices are highmainly in view of the minimum support price (MSP) of Rs 550 per quintal being offered for wheat by government.

``The MSP is in the interest of farmers and government procurement is in consumers' interest,'' the minister said.Barnala said it was in consumers' interest that government was carrying additional stock of five million tonnes despite high costs involved in maintaining the inventory.

Asked about government's proposal to offer additional five kg foodgrain under the public distribution system (PDS) for those below poverty line (BPL), he said it was still under the ministry's consideration.

``We wanted to take it up but have held it back in view of the Kargil conflict. We have not given up the proposal,'' he said. The proposal would entail an additional expenditure of Rs 1,600 crore for government, he said.

Meanwhile, food ministry sources said centre had written to the states saying that they would be given whatever quantity of wheat was demanded by them.

This was mainly in view of foodgrainstocks rising to 33.35 million tonnes as on July 1. Of this, rice stocks was 11.13 million tonnes and wheat 22.20 million tonnes.

Despite centre's offer to allocate wheat under the open sale scheme, many states had not come forward, they said. However, they hoped that southern states could come forward as open market prices were higher than rates offered under open sale by the government.

Of the 50 lakh tonnes allocated for open sale, including 10 lakh tonnes for flour mills, the offtake was only five lakh tonnes, the sources said.