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Parlimentary panel favours 15 per cent cut in foodgrain export prices

A parliamentary panel has asked the government to reduce export prices of foodgrains by 15 per cent to increase their off-take in view of the large amount of surplus stocks.

"In view of the surplus stocks, government should reduce the prices by about 15 per cent and allow exports to earn the precious foreign exchange," Parliamentary Standing Committee on Commerce said.

The committee, headed by Sikander Bakht, said the government should also provide refrigerated godowns in fruit and vegetable growing centres and link them with ports and airports for destination markets.

In order to be competitive in the international market, there is need for a long-term consistent policy to promote agri-exports, it said, adding this is particularly necessary in view of the removal of quantitative restrictions.

Such long-term policy is also necessary as there is a huge surplus of wheat in the country, it said.

The committee further suggested that government should allow export of 10 million tonnes of wheat in the next two years.

On export of fruits and vegetables, the committee said that despite India being the second largest producer, its exports are negligible.

It said one of the major impediments in the development of horticulture exports was the incidence of high air freight rates, which pre-empted these products from competitive pricing.

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