PM for monsoon contingency plan; wheat export banned

India on Monday reimposed a ban on wheat exports and the PM asked officials to prepare a Plan B in case Monson got further delayed.

New Delhi: India on Monday reimposed a ban on
wheat exports and set up a ministerial group to ensure food
security- on a day when the Prime Minister reviewed crop
situation as also Monsoon, which the weatherman says will
improve this week.

"The briefing that India Meteorological Department made
this morning (on monsoon situation, I can say the) entire week
will be a good week. If this prediction is correct, then I can
definitely say we are out of trouble," Agriculture Minister
Sharad Pawar told reporters.

He, however, said that the country has still not switched
to `Plan-B` although the Prime Minister asked officials to put
in place a contingency plan.

Hours later, an official release said an Empowered Group
of Ministers, led by Finance Minister Pranab Mukherjee, will
look into foodgrain procurement and management. Separately,
the Directorate General of Foreign Trade issued a notification
that cancelled a July 3 order allowing exports of wheat.

The government had slapped a ban on export of wheat and
wheat products in 2007 to boost domestic supply, but had
relaxed it 10 days ago- when it allowed export of up to nine
lakh tonnes of the food grain through three state-owned firms.

Sources said Prime Minister Manmohan Singh was apprised
of the crop situation and officials expected 95 per cent of
sowing to be completed this month. Paddy sowing has not
reached last year`s level. "I`m keeping my fingers crossed,"
Pawar told reporters separately.

However, the DGFT has so far not withdrawn the go-ahead
on the export of up to 6.5 lakh tonnes of wheat products by
March-end next year.

The country`s wheat production is estimated at 77.63
million tonnes in 2008-09, a tad less than the 78.57 million
tonnes the previous year. Of this, official agencies have
procured over 25 million tonnes mainly for welfare programmes.

The EGoM would look into issues relating to revision
Central Issue Price for wheat and rice, strategy for
procurement of food grains, management of central stocks of
wheat and rice, policy for import and export and price
management of edible oils and issues relating to the proposed
food security law, among other things.

According to official estimates, 66.66 per cent of the
country`s 140 million hectares cultivable land depends on
rains, while the rest is irrigated.

The weather office expects monsoon to be near normal in
July, which is crucial for the 235-million strong farming
community.

The IMD had forecast below normal rainfall this year in
June. It said the country was expected to receive 93 per cent
rains of the average rainfall for the season while
northwestern regions would get deficient rains.

The country as a whole has received near normal rainfall
last week and 21 out of the 36 meteorological sub-divisions
received normal to excess rains. In the rest 15 sub-divisions,
rainfall was either deficient or scanty, the weather office
said.

Bureau Report

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