The government of India would continue with export of agricultural commodities, a weak monsoon notwithstanding. Talking to reporters in the capital, Union Agriculture Minister Sharad Pawar said   millions of tonnes of wheat and other grains being in excess of domestic demands could be easily exported.

The stock of food grains is presently huge in the country and there is absolutely no cause for concern Mr Pawar added.

Sources say about 2 million tonnes of wheat were recently exported to ease pressure on the storing facilities. Last year in September, the govt had lifted ban on export of non-basmati rice and wheat.

According to Mr Pawar, there has of late been some improvement in monsoon but its behaviour in Karnataka and some portions of Maharashtra is still erratic. The production of some coarse cereals may be affected in parts of the country due to a shortage of rain , the  minister added.

However, experts say there is likely to be a 23 percent less rainfall this year and this is bound to create difficulties for the country’s economy. The low rainfall they add would definitely make India’s goal of achieving a high economic growth much more difficult.

Farm experts are of the view that cheaper crop loan facility has played a significant role in enhancing the country’s food grains production, a record 250.42 million tonnes in 2011-12 crop year.

Since 2006-07, the government has been providing interest subvention to all public sector banks including cooperative banks for short-term crop loans of up to Rs 3 lakh, so as to ensure short-term agriculture credit was available at 7 per cent to farmers.

Sources say the finance  ministry has suggested that the target of credit flow to agriculture sector by banks and financial institutions be continued at Rs 4,75,000 crore in the 2012-13 fiscal as well.

However, the ministry has sought some mechanism to be evolved to ensure credit access to farmers in the Eastern states, where the government is trying to usher in the second Green Revolution. Credit flow to eastern states has been lower as compared to other states.

Union agriculture Minister Sharad Pawar told Rajya Sabha on Friday said the government was taking “appropriate action” and was in the process of setting up new storage facilities.

When asked about the construction of modern storehouses in view of huge amounts of grains being wasted in the absence of adequate facilities Pawar told that the government, the FCI (Food Corporation of India) has taken the responsibility of new godowns and is also introducing tenders.

The state governments are being asked to lease or provide land for setting up new warehouses for storage, told Pawar.

Pawar, however, added that the interests of the poor are being taken care of as the basic commodities are still being sold to people below the poverty line at prices agreed in 2002.

On Thursday the Supreme Court had said that the government could consider increasing the quantum of food supply to the population Below Poverty Line (BPL), open the fair price shops for all 30 days in a month and distribute food grains to the deserving population at a very low cost or no cost.

17.8 million tonnes of food grain, which can feed 140 million people for a month, is being wasted because of shortage of storage facilities.

The Supreme Court has suggested that the government distribute food free of cost to the poor rather than let it go waste.