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| India eyes grain exports to benefit from high prices Wed, 23 Feb 2011 10:47:51 GMT |
| NEW DELHI: India's farm minister, citing high global prices, called for wheat, rice and sugar exports to resume on Wednesday to take advantage of high global prices for the commodities. Pawar's call for exports came as at least 100,000 trade unionists marched through the Indian capital on Wednesday in a protest against high food prices and unemployment. India, the world's 2nd-largest producer of wheat and rice, has kept a tight control over grain exports since 2007, allowing only limited sales through diplomatic deals, while the nation's stocks swelled after three straight years of bumper harvests. "This is the right time to give serious thought over allowing exports of certain quantities of rice, wheat and sugar as we have ample stocks. World prices are very good while the harvest looks favourable," Sharad Pawar told reporters on Wednesday. "Exports should be allowed only to the extent where it doesn't hurt domestic consumers." The demonstration against food prices was the biggest in New Delhi in years and included members of a trade union linked to the ruling Congress party, reflecting disquiet within the party over food inflation, which hit a high above 18 percent last December. Global concerns over food inflation, with top importers in Africa and the Middle East rushing to cover supplies to head off a repeat of the 2008 food crisis, have sparked riots in countries from Egypt to Haiti. Benchmark US wheat , corn and soybean prices have climbed to their highest in 2-1/2 year this month to trade near peaks, driven by adverse weather curbing supplies amid strong demand from food and fuel sectors. India usually produces more of these basic staples than its domestic needs and currently has a huge stockpile of rice and wheat. But a severe drought in 2009 pushed it to the global market for sugar and sent international prices spiralling to three decade highs. The nation's Feb. 1 wheat stocks were at 19.4 million tonnes, substantially higher than a target of 8.2 million tonnes, while rice inventory rose to 27.8 million tonnes against a target of 11.8 million tonnes, according to government sources. "Farmers would like to enjoy higher international prices, especially for sugar and Pakistan has been selling wheat as its taking advantage of the international situation," said Ker Chung Yang, commodities analyst at Singapore-based Phillip Futures. "India should follow its neighbour. India could easily sell wheat to neighbouring countries especially the ones that have been hit by floods." Pakistan started exporting wheat in January for the first time in three years, selling cargoes to Bangladesh and Myanmar to takes advantage of rising global prices and surplus stocks at home. Pawar remains farm minister but lost the food portfolio in a government reshuffle last month. His opinion still carries weight but decisions on exports are usually made by the cabinet. |
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