Stock Market India, Paisacontrol.com

The government has permitted export of 3,00,000 tons of rice and wheat through diplomatic channels to Bangladesh and Nepal. ``There was some request from the External Affairs Ministry for additional quantity to Bangladesh and Nepal and we have accepted that,`` food and agriculture minister Sharad Pawar said.

Newly, the Empowered Group of Ministers (EGOM) on food, headed by Finance Minister Pranab Mukherjee, had accepted export of 1,00,000 tons to Nepal and 2,00,000 tons to Bangladesh, he said.

At present, the government godowns have 57.8 mn ton food grains. India has forced a ban on rice export and wheat export to contain domestic prices. The ban on rice was forced in April 2008 and that on wheat in February 2007. But the ban was relaxed now and then on diplomatic grounds.

In May, the government had allowed the export of 4 lakh tons of wheat to Bangladesh from the central pool at Rs 15.43 a kg. Previously, in February, export of 50,000 tons of the food grain was allowed to Nepal. The country is likely to have produced 89.13 mn tons of rice and 80.71 mn tons of wheat in 2009-10.