Cautious Indian government finally took decision to lift ban on export of wheat which was clamped in year 2007 to stabilise domestic wheat prices . The decision was taken after reviewing the stocks in FCI and inflation s trends . India had record production of wheat this season thus enabling govt to lift ban .Wheat prices directly affects number of bakeries in the country as they are major consumers of wheat flour .International prices are lower than the domestic prices .
A report in ET .
A report in ET .
The government move to lift the fouryear-old ban on wheat export is unlikely to make a major impact on domestic prices as Indian prices are not at parity with global prices. Traders feel that the best parity in export of wheat will come for Rajkot traders where the prices are ruling at Rs 1,100 to Rs 1,110 at mill delivery.
"Traders in Kota and Indore are also expected to benefit as distance from these markets to Kandla port will be less. However, for traders in Uttar Pradesh's wheat growing belt of Bareilly and Shahjahanpur, it will not be at parity owing to increased wheat prices at Rs 1,200 to Rs 1,220 per quintal excluding transportation cost," said a Mumbaibased market trader who added that major destinations would include South Africa, Dubai and SAARC countries.
source
Economic Times
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