17:44 UK, 16th June 2009, by Mike Verdin
India's plege to feed poor may dent wheat exports

The Indian government's pledge to help the poor may delay the country's revival as a wheat exporter despite a near-record stockpile of 36m tonnes, a US briefing has said.

US officials in Delhi have halved to 1m tonnes their forecast for India's wheat exports in the current marketing year, which began in April.

The country appears to have an abundance of wheat, with a government price support programme on course to stockpile 24.5m tonnes of the grain by the end of this month, on top of inventories of 13.5m tonnes carried over from a year before.

Meanwhile, this season's wheat harvest is on track to produce 77.6m tonnes, just 1m tonnes short of the 2008-09 record and roughly in line with India's historical annual consumption.

'Not a simple issue'

However, the country has stepped back from what had appeared likely consent for shipments of 2m tonnes.

The delay to the decision may reflect a pre-election promise to provide every family below the poverty line with 25 kilogrammes of wheat or rice a month, the report said, noting that the government is also considering legislation to guarantee food for all.

Furthermore, even if shipments were allowed, high local prices, which the government has supported at the equivalent of $230 a tonne.

The report follows comments from Rahul Khullar, India's trade secretary, on Monday that he was "actively looking" at whether to lift curbs on wheat and rice shipments.

"It is not a simple issue," he said.

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