NEW DELHI, May 17: Decks have been cleared for resumption of wheat and sugar exports from the country with the commerce ministry sending a detailed note to the cabinet for allowing their exports to avoid a glut in the domestic market.The issue of allowing wheat and sugar exports would be taken up by the Cabinet Committee on Prices (CCP), which is expected to meet tomorrow, official sources told PTI.With the food and agriculture ministries also favouring exports of wheat and sugar to help the domestic market tide over a situation of over-supply, the decision on allowing these exports is expected to be taken without any hitch, official sources said.Asked how government proposed to allow exports of sugar and wheat when their domestic prices were higher than global prices, the sources said it would be left to international buyers to make a choice.India had discontinued wheat exports since 1995-96 season (July 1995-June 1996) in order to meet domestic demand, while sugar exports were stopped in 1996-97crop year (October - September) due to shortage in indigenous production.The food and agriculture ministries have asked commerce ministry to allow wheat exports in view of a record production of nearly 70.63 million tonnes. Sugar exports have also been recommended in view of a projected 150 lakh tonnes output this season and a stock of 108 lakh tonnes as on March 31. Though wheat is generally not exported, government annually allows exports of one lakh tonnes of wheat products to cater to non-resident Indians abroad. Recently, commerce ministry gave license to private traders to export 25,000 tonnes of wheat.Though sugar can also be exported under license, it is not taking place as global prices are far less than domestic prices. In fact, domestic millers had burnt their fingers in 1996-97 when they undertook sugar exports."We will have to amend our trade policy to allow these export and this is what CCP will consider tomorrow," the source said. Besides allowing wheat exports to Bangladesh, commerceministry was currently taking up the issue of exports on a "case to case basis", they said, adding recently permission was granted to export a "small quantity" of organic wheat to Germany.As far as sugar is concerned, there were demands from Hong Kong and Mauritius. "We can export at least one lakh tonnes to these countries," the sources added.
