India is likely to lift the wheat export ban that was imposed a couple of year ago and permit private companies to export 2 million tonnes of wheat procured from open market after the poll results are announced on May 16, reported the Economic Times.

According to the International Grains Council, the global wheat stocks are at an eight-year high at 171 million tonnes, as many importers producing more wheat resulting in lower imports led to decrease in world wheat prices. Under such a scenario, the private companies may not procure wheat from domestic market for exports, the report added. The private sector procured only 0.56 million tonnes of wheat till April.

According to the International Grains Council, the global wheat stocks are at an eight-year high at 171 million tonnes, as many importers increased their produce and lowered imports led, thereby pushing up their carryover stock from last year and keeping world wheat prices downward. Under such a scenario, the private sector did not pile up their stock for exports and bought only 0.56 million tonnes wheat in April, the report added.

Besides the private sector giants procuring wheat in bulk quantities, the roller flourmills and chakkis do procure wheat. Several private players decided to wait for the prices to fall below Rs.935 per quintal level, the prevailing market price in Uttar Pradesh, to make purchases.

In contrast, Indian state agencies procured huge quantities of wheat from farmers in the northern states of Punjab and Haryana, traders said on Thursday, pressurizing the government to allow exports from overflowing granaries. The government has already eased several controls on rice exports and it is a matter of time before curbs on wheat trade are also relaxed, traders added.

Indian traders said wheat exports were not yet viable as prices were too high, despite recent gains in U.S wheat futures, which rose for a second straight session after widely followed analytical firm Informa Economics cut its forecast for winter wheat production.

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