The Hindu Business Line : Govt may mull lifting ban on wheat, rice

New Delhi, June 15 After duly factoring in the welfare schemes of the UPA government in its second stint, if there is a “marketable” surplus, the Government might “actively consider” lifting the existing ban on non-basmati rice and wheat, the new Commerce Secretary, Mr Rahul Khullar, said here.

In his first media interaction, Mr Khullar said he “will have to study the demand situation considering the various schemes and programmes of the Government”, when his attention was drawn to the continuing ban on farm product exports.

In the wake of the high food inflation in 2007 and most of last year, the Government had virtually banned the export of agricultural items, including wheat, pulses, edible oil and non-basmati rice. With the price pressure now being less intense, with supply situation also seeing some easing, the Government is “actively considering” lifting the ban on wheat and non-basmati rice.

Export front

The Government is toying with lifting the export ban on wheat in view of its high output and higher procurement of wheat.

On the decline in exports in successive months since October last, Mr Khullar said the Government was planning to do everything possible to help the sector gain a competitive edge over the rivals in the wake of the global slowdown.

“We have made a series of proposals to the Finance Ministry. Many of them require serious legislative intervention,” he said.

He, however, cautioned that many of the emerging signs of a turnaround in external demand might be misplaced as the “first two quarters of 2009 may not show any dramatic improvement in exports. The green shoots talked about may just be weeds”.

More Stories on : Outlook | Wheat | Rice

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Monsoon onset phase to be replicated again

Spot rubber declines on buyer resistance

Rubber census could reduce price volatility

Vegoil imports rise to 3-month high in May

Pepper futures close higher

Govt may mull lifting ban on wheat, rice