50 lakh tonnes of grain to be offloaded in domestic market

Reeling under the pressure of huge foodgrain stocks, well above the storage capacity across the country, the government on Thursday decided to send 50 lakh tonnes of grains to the states at much below the minimum support price (MSP), leaving a window open for export at a later date.

“We will look into the issue once the Agriculture Minister is back in town,” Finance Minister Pranab Mukherjee is believed to have said in reference to the export of food grains, while chairing the meeting of Empowered Group of Ministers (EGoM) on food security on Thursday. Mukherjee’s response came after Food Minister K V Thomas apprised the EGoM regarding the food stock and storage situation in the country. Pawar was not present as he was in Paris to attend a meeting of agriculture ministers of G20 countries.

A functionary in the Food Ministry early in the day indicated that the ministry would no longer resist allowing export of 20 lakh tonnes each of wheat and rice, This, the official said, was a major change in stance given that Thomas has been resisting the demand for foodgrain export, citing the demands of proposed food security bill.

The meeting, however, allowed export of additional five lakh tonnes of sugar as against the demand for 10 lakh tonnes’ export by some members of the EGoM. Rural Development Minister Vilas Rao Deshmukh and Deputy Chairperson of Planning Commission Montek Singh Ahluwalia suggested allowing 10 lakh tonnes of sugar export, sources said.

Earlier, Agriculture Minister Sharad Pawar had written to the Prime Minister requesting the government to consider allowing 10 lakh tonnes of sugar export. Thomas, in response, is said to have suggested allowing only five lakh tonnes of export. But no final decision on food grain export was taken in Thursday’s meeting and the issue was left for a later decision, citing the absence of Pawar.