NEW DELHI, Sept 8: India, challenging major producers like the United States and Australia, said on Thursday it was allowing durum wheat farmers to export their crop at . lower prices, reports Reuter.

The move reflected growing Indian supplies of durum wheat, used mainly to make pasta, and signalled the nation's willingness to compete with the world's wheat giants in lucrative markets in North Africa and Southern Europe.

The government, concerned over slumping rice sales. was also reported to be considering scrapping a floor price on exports of non-basmati rice.

Both moves would be In line with India's pledge under the new world trade treaty, the General Agreement on Tariffs and Trade (GATT)r to relax curbs on exports.

The Director-General of Foreign Trade. Sanjeeva Reddv. told Reuters Ilie nilivi-

mum durum wheat export price of 160 dollars per tonne was no longer needed because local production was rising and supplies were adequate to meet India's demand.

The floor price had held back exports of durum wheat, one of the most profitable wheat exports on world markets where US. Australian. Canadian and Argentine suppliers dominate.

The government set the floor price of 160 dollar per tonne last November, and set a ceiling on annual exports of 300.000 tonnes.

The price was not competitive on world markets, however. and durum wheat exports fell to 59.000 tonnes in the year ended last March 31.

Reddy said the decision to abolish the minimum export price, taken on Wednesday, would boost Indian exports.

In June. India estimated 1993-94 wheat production at 57.8 million tonnes, up from 56.76 million tn 1992-93.