A senior government panel constituted to look into the matter of allowing additional export of wheat from the country, has announced its decision to approve a plan to export 5 million tonne wheat from government storage facilities using private sector traders.

The Group of Ministers (GoM) headed by Agriculture Minister Sharad Pawar has approved the proposal to export 5 million tonne wheat from the country aimed at clearing storage houses ahead of the new crop harvest in India. The National Centre for Agricultural Economics and Policy Research based in New Delhi had released data showing that the total sales form India may reach 10 million tons in the year till1 April, 2013.

Government officials have said that the panel of ministers met on Thursday to discuss the matter. The panel includes Food Minister K. V. Thomas, Finance Minister Palaniappan Chidambaram and Agriculture Minister Sharad Pawar.

The government estimates that the farmers are expected to produce 92.3 million tonnes, which is higher than about 76 million tonnes of domestic demand. This will be sixth straight year of higher output than demand in the country. India is the second biggest wheat grower in the world and with the exports allowed, The government will be able to clear old stock to make room for fresh record harvest that will come in April.