NEW DELHI: Though the govt has set aside 1.8 million tonnes of wheat for export in a bid to earn the much-needed foreign exchange the official trading agencies are facing difficulties in finding buyers.

Besides the inherent quality of the Indian wheat which limits its uses for making various end-products the world market at present have abundant grain stocks. The competition has become stiff even among the regular exporters because of the U.S.A. heavily subsidizing its wheat sales using the funds available under its export enhancement program (EEP).

Last year too only two lakh tonnes of wheat could be exported against the target of one million tonnes leaving a balance of 0.8 million tonne. This year again one million tonnes of wheat has been earmarked for this purpose raising the total quantity available for export to 1.8 million tonne Wheat exports are handled by the State Trading Corporation (S.T.C.) and the Metals and Minerals Trading Corporation (MMTC).

The two agencies have so far managed to enter into firm contracts for the sale of only 7.3 lakh tonnes this year. Of this about four lakh tonne have already been shipped. They would have to find buyers for over one million tonnes more during the current year to achieve the target.

Most of the Indian wheat varieties have been bred specifically for making pan baked bread (chapatis). They are not ideally suited for other products which are generally consumed in the wheat importing countries. This confines the acceptability of the Indian wheat to only a few countries where it is put to a similar use.

NEW BREED: It is only recently that Indian wheat breeders have started paying attention to developing durum wheat which commands a better export market as it can be used for making products like macaroni spaghetti noodles etc. Some varieties of this type of wheat are now available but their cultivation is limited to a very small acreage.

The conditions in the international grain market al present are not conducive to a new exporter like India. According to the Food and Agriculture Organization (FAO) supplies of wheat by regular major exporters are proving adequate to meet the effective demand.

An element of uncertainty about the precise wheat import demand has been added by the lack of definite indication of the grain purchases by the Soviet Union A sizeable deficit of grains notwithstanding the scarcity of foreign currency and limited availability of long term credit may constrain the Soviet Union’s ability to import the required quantity.

Article extracted from this publication >> August 2, 1991