India in talks with Iran over wheat exports: FCI

New Delhi: India is negotiating with Iran for exporting two lakh tonnes of wheat in December and 10 lakh tonnes annually for the next three years, Food Corporation of India said Tuesday.

"Negotiations are being held with Iran government for export of 2 lakh tonnes of wheat in December 2012 and in the long run 1 million tonnes each for the next three years," FCI Chairman and Managing Director Amar Singh told reporters here.

India lifted ban on wheat exports in September, 2011 through private trade on account of record production in two consecutive years. Later, two million tonnes of wheat exports were allowed from the government stock.

But, Iran has not been importing Indian wheat since 1996 due to quality issues. The two nations are in talks for the last couple of months to sort out the issue. An Indian delegation has recently visited Iran in this regard.

Singh said: "We are still negotiating with Iran and nothing has been finalised yet."

In his presentation, he said that the government has approved 6.4 lakh tonnes of wheat exports from the central pool out of 20 lakh tonnes approved by the Cabinet Committee on Economic Affairs (CCEA).

"Government has decided to export 2 million tonnes of wheat from central pool vide CCEA decision, which is to be exported by March 31. The export is to be undertaken through STC, PEC and MMTC.

"A total of 6.40 lakh tonnes has been approved and about 3 lakh tonnes has been shipped. Remaining quantity would be shipped by next month," it said.

Wheat is being exported to Bangladesh, South Korea, Thailand and Indonesia, he said.

The country has surplus stocks due to record production and procurement in the last two consecutive years. As on October 1, the FCI has a stock of 66.52 million tonnes, against 51.78 million tonnes in the year-ago.

PTI