NEW DELHI (Commodity Online): Despite a record wheat stockpiles and expected higher production this year, India is unlikely to lift the ban on wheat exports, which was imposed in 2007 to boost domestic supply.

The country is reeling under high food inflation as the wholesale price index-based inflation in February surged 9.89% from a year earlier, its fastest pace in 16 months.

In the wake of higher food inflation, the government has decided to continue the ban on wheat export, said a Food Ministry official on Wednesday. However, the Empowered Group of Ministers (EGoM) on food led by Finance Minister Pranab Mukharjee would consider the matter in June after the government completes its purchases of the grain from farmers, he added.

Earlier this month, the Agriculture Minister, Sharad Pawar said that the EGoM would consider removing ban in its next meeting in order to arrange storage for the new crop.



India, world’s second largest producer of wheat, is expected to produce 82 million tons in the crop year ending June 30, 2010. That is higher than the 80.68 million tons the country produced in the last crop year.

Meanwhile, the Ministry official, who declined to be named, said that the government will only allow exports of 250,000 tonnes of wheat to Nepal on government-to-government basis, but won't permit any other exports.

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