Cabinet soon to consider cutting wheat export floor price

NEW DELHI Thu Oct 24, 2013 7:16pm IST

Labourers remove dust from paddy crop at a wholesale grain market in Chandigarh October 22, 2013. REUTERS/Ajay Verma

Labourers remove dust from paddy crop at a wholesale grain market in Chandigarh October 22, 2013.

Credit: Reuters/Ajay Verma

Related Topics

NEW DELHI (Reuters) - The cabinet will soon consider cutting the floor price for wheat exports by 13 percent, two government sources said on Thursday, potentially boosting supplies from the world's second-biggest producer and easing benchmark prices in Chicago.

"After an inter-ministerial consultation, a note is being prepared to help the cabinet take up the issue of lowering the price to $260 a tonne," said a government source involved in the process.

Another source confirmed the move.

No date has been fixed for the next cabinet meeting, which would be the final step for a cut in wheat export prices. Consensus between ministries usually means the cabinet will approve at this stage, although new hurdles can emerge.

Cabinet meetings are usually on Thursdays but it was not held this week because Prime Minister Manmohan Singh was travelling back from China.

Reuters reported on October 15 that the government might soon cut the floor price for exports of wheat from state-run warehouses, overflowing with stocks after bumper harvests since 2007.

Stocks will surge further as farmers are poised to harvest a bumper winter crop after above average monsoon rains raised soil moisture levels and replenished reservoirs.

(Reporting by Rajesh Kumar Singh and; Mayank Bhardwaj; Editing by Jo Winterbottom and David Evans)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

WTO DEAL

REUTERS SHOWCASE

Factory Activity

Factory Activity

Factories post fastest growth for 17 months in July  Full Article 

Car Launch Ahead

Car Launch Ahead

Tata Motors bets on new sedan to revive weak India sales.  Full Article 

Gold Smuggling

Gold Smuggling

In cat-and-mouse game, India uncovers new gold smuggling route.  Full Article 

Market Eye

Market Eye

FII selling of Indian stocks on Thursday biggest in a month  Full Article 

Profit Falls

Profit Falls

DLF quarterly profit falls 29 pct on lower home sales  Full Article 

Re-gaining Momentum

Re-gaining Momentum

China PMIs jump to multi-month highs in July, add to view economy is steadying  Full Article 

Coal India

Coal India

Some Coal India mines may be run by foreign firms - minister  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage