Sharma, Thomas say it up to EGoM to allow wheat exports

Clearing the air over wheat exports, food and commerce ministers today said it is up to the Empowered Group of Ministers (EGoM) to take a call on the issue.

Food Minister KV Thomas and Commerce Minister Anand Sharma made it clear that the decision to allow wheat exports would be taken by the EGoM.

They were reacting to a recent statement of Agriculture Minister Sharad Pawar that there was no ban on export of the staple foodgrain.

"The decision on wheat export will be taken in the next meeting of the EGoM," Food Minister KV Thomas told reporters. The EGoM meeting is scheduled next week, sources said.

Sharma also said, "The EGoM has not taken a view as such...".

The confusion arose after Pawar on July 16 said, "Yes, there is no ban. Wheat exports are allowed."

While the proposal of allowing exports found 'in-principle' favour in the July 11 meeting eGoM, chaired by Finance Minister Pranab Mukherjee, the decision was deferred in the wake of depressed prices in the global market. It was felt, any announcement at this stage by India, would further depress the global prices.

The proposal to open exports was also supported in the wake of shortage of storage capacity, sources said.

The government had banned wheat exports since early 2007 to boost domestic supply and contain inflation.

At present, the government godowns are brimming with 37.8 million tonnes of wheat stock in view of bumper output.

According to the latest estimates from the Agriculture Ministry, the country's total wheat output is pegged at 85.93 million tonnes in the 2010-11 crop year (July-June) as against 80.80 MT in the previous year.