India lifts ban Bangladesh to import 0.4m tonnes wheat
Friday, 14 May 2010
NEW DELHI (bdnews24.com): India has partially lifted a ban on wheat export to facilitate its supply to Bangladesh.
The Indian commerce ministry relaxed the three-year-old prohibition on overseas shipment of wheat to allow export of some 400,000 (0.4 million) tonnes to Bangladesh.
India's director general of foreign trade RS Gujral stated that the Food Corporation of India would export 400,000 tonnes of wheat to Bangladesh out of the country's 'central pool stock'.
"Wheat shall be exported (to Bangladesh) at economic cost," added Gujral.
India, the second largest producer of wheat in the world, banned exports of the grain in 2007.
The prohibition was briefly lifted in July 2009 before being re-imposed.
India's wheat stocks stood at more than seven times its target of 30.8 million tonnes on April 1.
Sources said that a few weeks back Dhaka had requested Delhi to relax the prohibition on wheat export.
Bangladesh conveyed its request to India once again last week when Prime Minister Sheikh Hasina's Economic Advisor Mashiur Rahman led a high-level delegation to New Delhi.
He held talks with Indian Finance Minister Pranab Mukherjee and other senior ministers as well as officials of the Indian foreign ministry.
Bangladesh is the world's fifth highest wheat importer.
With domestic production remaining stagnant, the Awami League government is expected to import more wheat this fiscal than in the previous fiscal, reaching up to three million tonnes.
India had relaxed the prohibition on wheat export to facilitate supply of 50,000 tonnes to Nepal in February.
The Indian commerce ministry relaxed the three-year-old prohibition on overseas shipment of wheat to allow export of some 400,000 (0.4 million) tonnes to Bangladesh.
India's director general of foreign trade RS Gujral stated that the Food Corporation of India would export 400,000 tonnes of wheat to Bangladesh out of the country's 'central pool stock'.
"Wheat shall be exported (to Bangladesh) at economic cost," added Gujral.
India, the second largest producer of wheat in the world, banned exports of the grain in 2007.
The prohibition was briefly lifted in July 2009 before being re-imposed.
India's wheat stocks stood at more than seven times its target of 30.8 million tonnes on April 1.
Sources said that a few weeks back Dhaka had requested Delhi to relax the prohibition on wheat export.
Bangladesh conveyed its request to India once again last week when Prime Minister Sheikh Hasina's Economic Advisor Mashiur Rahman led a high-level delegation to New Delhi.
He held talks with Indian Finance Minister Pranab Mukherjee and other senior ministers as well as officials of the Indian foreign ministry.
Bangladesh is the world's fifth highest wheat importer.
With domestic production remaining stagnant, the Awami League government is expected to import more wheat this fiscal than in the previous fiscal, reaching up to three million tonnes.
India had relaxed the prohibition on wheat export to facilitate supply of 50,000 tonnes to Nepal in February.