The government has spent nearly Rs 16,537 crore (Rs 165.37 billion) on subsidising the export of about 34 million tonnes of wheat and rice since 2000-01, when it began issuing foodgrains from the official stocks for exports. 
 
The Centre spent Rs 9,161.05 crore (Rs 91.61 billion) on subsidising the export of 20.3 million tonnes of wheat and Rs 7,375.92 crore (Rs 73.76 billion) on shipping 13.58 million tonnes of rice, according to food ministry sources. 
 
The export of foodgrains from the government stocks was allowed from December 2000, when the stocks with the Food Corporation of India swelled to over 63.1 million tonnes. The government gave fiscal incentives for exports as were permissible under the World Trade Organisation norms. 
 
These included issuing grains at lower than the economic cost but higher than those at which the cereals were sold to domestic consumers and the reimbursement of internal transportation costs. 
 
Under the policy, the prices charged by the FCI for wheat and rice issued for exports were kept below the international prices but above those charged from below poverty line (BPL) consumers. Besides, the grains were delivered at the ports. 
 
As a result, the export of wheat rose steadily from 2 million tonnes in 2000-01 to 3.96 million tonnes in 2001-02, 6.79 million tonnes in 2002-03 and peaking at 7.06 million tonnes in 2003-04. 
 
Similarly, the export of rice also witnessed a consistent upward trend, starting from 42,000 tonnes in 2000-01 to 2.35 million tonnes in 2001-02, and crossing 8.07 million tonnes in 2002-03. However, the shipments fell in 2003-04 to around 3 million tonnes because of drought-driven reduced supplies. 
 
The ban on releasing more stocks for exports after the dwindling of FCI's inventories has led to a virtual collapse of foodgrain exports in 2004-05. Only the orders already in hand were honoured. Thus, only 431,000 tonnes of wheat and merely 45,000 tonnes of rice are estimated to have been exported till May-end in the current fiscal. 
 
The outgo of export subsidy also varied according to the shipped volumes. While only about Rs 1,008.47 crore (Rs 10.08 billion) was incurred on subsidising wheat exports in 2001-02, the figure rose to Rs 1,682.42 crore (Rs 16.82 billion) in 2001-02, Rs 3,088.85 crore (Rs 30.89 billion) in 2002-03 and peaked at Rs 3,234.14 crore (Rs 32.34 billion) in 2003-04.