CACP seeks 10-MT wheat export in 2013-14
The Commission for Agricultural Costs and Prices (CACP) has suggested that the government should push aggressively for wheat exports of a record 10 million tonne from its
reserves in the next fiscal before global prices drop on fresh supplies. Time is, however, running out for the government as trade executives expect global prices to ease significantly from July when spring wheat supplies from the US, a key exporter, flood the market. Moreover, the executives remain sceptical about the country's ability to export 10 million tonne in 2013-14, considering dwindling cost-advantage and limited domestic port capacity.
Global wheat production is expected to rise 5.5% in 2013-14 to 690 million tonne compared with a 6% drop in 2012-13, according to the latest estimate of the International Grains Council. Global wheat prices have already started moderating, albeit at a slow pace, responding to the forecast of a better crop next year. After soaring about 32% until November on
smaller harvests in the US, Russia and the Ukraine due to dry spells, wheat prices ended the year with a 26% gain.
India, the world’s second-biggest wheat producer, has allowed wheat exports of 4.5 million tonne from its central reserves since July, of which 1.35 million tonne has been shipped.
“A 10-million-tonne export target of wheat can be achieved in the 2013-14 fiscal, if the government acts aggressively and quickly,” CACP chairman Ashok Gulati said
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