Wheat procurement touching 160 lakh tonnes this season, the carrying (storage) cost of the burgeoning stocks runs into nearly Rs.3000 crore per year. The cost of storing one tonne of wheat is double the economic cost (including procurement, transportation and handling). Some options suggested for export of surplus wheat. Urgency to dispose stocks mounts as Rabi procurement season ends. Export is going to be difficult because of the quality of domestic wheat and its prohibitive price on account of high rate of minimum support price. While the prevailing international price ranges from $110 to 160 per tonne, the indigenous wheat price is around $ 200. If the govt. tries to export surplus wheat at a lower price to match the international market, it will be subsiding the foreign market. |
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