India wheat exports: Waiting for Godot!

With an all-time record of 84 million tons of wheat output expected from the ongoing harvest season in India, the government is concerned as what to do with it!

This is in a land where people still crave for a three-time meal; as of 2010, 37% of India’s 1.35 billion people lives below the poverty line, says economywatch.com.

This is a whopping 49 crore teeming multitude! They live in impoverished, unhealthy and sub-standard conditions eking out what we call suffering, rather than a living.

As this is written, elections in Indian States are going on. The inflation came in as a jolt and though subsiding, is still a cause of worry for the political-minded.

This has reportedly prompted the govt to weigh each grain of pros and cons before taking a decision to lift the 2007 ban on wheat exports.

And unless Godot of decision literally arrives fast, chances are more that the grains will rot.

The food minister of India had told that the decision would be taken by a panel of Empowered Group of Ministers.

The government intends to hoard 44 million tons of wheat, almost twice the volumes that is being distributed through PDS or Public Distribution System.

With nil enhancements in PDS facilities, and poor infrastructure conditions, it is highly unlikely that the hoarded wheat would be distributed to people on a generous basis.

This is suggestive of a possibility where the wheat would rot under the tarpaulins, this time too. This is despite the possibility of a proposed Food Security Bill getting enacted.

In March, the India government had allowed for 100% Foreign Direct Investment (FDI) under automatic route in storage and warehousing including warehousing of agriculture products with refrigeration (cold storage).

But the effect of this move would take time to trickle down. Last year, the Supreme Court of India had quashed the India government regarding grains rotting in ware houses.

May be we can learn from Pakistan in this regard!

Pakistan has approved export of 0.2 million tons of wheat to create space for fresh stocks procured from farmers.

This decision was taken at a meeting chaired by Finance Minister Abdul Hafeez Shaikh on Monday, reported Dawn. Wheat in Pakistan is being stored by Pakistan Agricultural Storage and Services Corporation.

On Sunday, there were reports that Pakistan is expecting an enhanced harvest due to fresh rains hitting the crops.

With the global wheat prices at record highs, the decision to export wheat is a sound one, economically.

And, in India, if the revenue from exported wheat can find their way to the bank accounts of the poor farmers, as it happened in Madhya Pradesh, Indian farmer would definitely smile; and guess what, would vote!

As published in: http://www.commodityonline.com/news/India-wheat-exports-Waiting-for-Godot!-38156-3-1.html