Record wheat crops in India could prompt lifting of export ban

India’s overflowing state-run warehouses will likely struggle to store a record wheat crop for the second year in a row, which may spur the government to lift a ban on the grain’s export, officials said Tuesday.

The government is aiming to procure 26 million tons wheat this year – 15 per cent more than last year. A decision on lifting the export ban, imposed in 2007, is expected in May after procurement ends, reported The Wall Street Journal.

Junior Farm Minister Arun S. Yadav said last week wheat output in 2010-11 will likely exceed the government’s estimate of 81.47 million metric tons. Some officials say it could be as high as 84 million tons, compounding storage worries.

Harvest of the new wheat crop in the northern grain bowl states of Punjab and Haryana has just started and is likely to peak between mid-April to end of the month. Wheat is sown in the winter months of October-November and good rains as well as high state-fixed minimum price of the wheat encouraged farmers to sow more of the staple.