India's wheat export likely to reach 7.5 mt: FAO

 NEW DELHI:  Food and Agriculture Organisation (FAO) report suggests that Indian wheat exports may reach 7.5 million tonnes in the current marketing year ending June 2013. This is likely to result from the record crop and larger carry over stocks seen and with other exporting countries facing supply concerns.

 During the marketing year July 2011- June 12, wheat export from India was low because it was only allowed via private trade. The ban was lifted in September 2011.

The FAO report said, "One striking feature of this season is the exceptional size of wheat exports by India, which are forecast to reach 7.5 million tones."

India is the second biggest wheat producing nation globally. There has been record harvest in India and to prevent build up of stocks, the country is encouraging export of government-held stocks. State-run organizations are already allowed to export 4.5 million tonnes of wheat. Private traders were recently allowed to ship additional 5 million tonnes of wheat.

The FAO report suggests that forecast was lower due to rainfall in some important wheat-producing areas, the wheat plantings are at a good level.