Star wheat trading houses have asked the Centre to give special incentive either through direct subsidy or a duty drawback to exporters at the time of any imports later. The proposal follows the Centre's permission last week to export 2 million tonnes wheat, which may come a cropper as there is wide price disparity between domestic and global markets. At present, Indian wheat is available for not less than Rs. In fact, as Indian wheat is nonspecific in nature, with no guarantees of either protein or gluten content, it is unlikely to be bought for human consumption abroad.
Indian wheat can only find buyers in the international feed market.
According to traders, though there is nascent demand for wheat in the world market, no buyer is approaching India because of the glaring price difference. Analysts, however, say the demand for a direct subsidy on exports is unrealistic, as it is Gattillegal. Instead the government should let the FCI export wheat directly. No doubt this would hit FCI's bottom line. But compensating private trading houses would also mean a similar outgo from the exchequer.