The government will not export its surplus wheat stock this year and will continue to offload the grain in the domestic market despite estimates of bumper wheat production.

Private traders can export wheat under the open general licence (OGL) scheme, Food Secretary Sudhir Kumar told PTI.

After lifting of ban on wheat export in September 2011, the government has exported nearly 6 million tonnes of wheat from FCI godowns during the 2012-13 and 2013-14 fiscals. However, there have been no shipments so far this financial year.

"We have no plans to export wheat this year. There will be no export from the official channel. Private traders can do it under the open general licence (OGL) scheme," Kumar said.

"We will offload our stocks in the domestic market and not in the international market even if it is viable," he added.

The government is already sitting on a wheat stock of 25 million tonnes as on January 1, much higher than the actual requirement of 13.8 million tonnes, as per the FCI data.

Moreover, the wheat production is estimated at 95.76 million tonnes in 2014-15 crop year (July-June) against 95.85 million tonnes in the last year.

The crop is ready for harvesting from April onwards. The government aims to procure 30 million tonnes of wheat this year to meet requirement of ration shops, further putting pressure on stocks.

Noting that the government has already started offloading surplus wheat in the domestic market under the open market sale scheme, Kumar said that the Food Corporation of India (FCI) -- the nodal agency for foodgrains procurement and distribution -- has sold about 3.5 million tonnes so far. Wheat is being sold under OMSS to boost domestic supply and check prices.

Asked if it has fixed a quantitative limit for wheat sale under OMSS, Kumar said, "This time, there is no quantity fixed. There is an open offer to sell anything above the buffer norm. Earlier, we used to take approval for fixed quantity, but there is no such system now."

At present, the wheat grown in the 2013-14 crop year is lying with FCI. "They have started offloading and have sold about 3.5 million tonnes so far this year." he added.

On poor response to OMSS sale in the previous years, the Secretary said, "We have sold about 6 million tonnes each in the last two years. It is not a small quantity, could have been more. But it depends on the buyer." India is the world's second largest producer of wheat.

Source:economictimes.indiatimes.com