India is likely to soon permit more wheat exports as the world’s second-biggest producer of the grain looks set to harvest a record crop this year, government sources said, swelling stockpiles in an oversupplied world market.

Any extra supply from India, though, could dampen Chicago prices which have fallen around 9% in the past month due to rising global supply. Leading producer Ukraine has already raised its 2013 grains output forecast to a record.
India is extremely cautious about allowing exports of wheat, a staple for its 1.2 billion population, and lifted a four-year-old ban on shipments in 2011 by allowing only private traders to sell on the world market.
But a succession of bumper crops and poor storage conditions that have led to substantial wastage have prompted a rethink on exports.Since last fiscal year India has exported nearly 4.5 million tonnes of wheat from state warehouses, and state-backed traders are now selling another 2 million tonnes via tenders.

In all likelihood, the crop is going to be an all-time high so more exports are almost certain now,” said an Indian government source directly involved in the decision-making process. “But we are yet to take a call on the quantity to be shipped out.