India, the world's second- largest producer of wheat and rice, has said free export of agricultural commodities could affect the country's food security at a time when global prices are high and urged G-20 nations to adopt flexibility in trade policy.

"Developing countries like India for whom free exports can be detrimental to their food security during the times of high global prices," Agriculture Minister Sharad Pawar said in the summary note circulated at the fist agriculture ministers' meeting of G-20 held in Paris.

Instead of going for free trade, he further said, that G-20 needs to have flexibility in export policy, just as is in the case of import policy.

"Due to the spike in food prices and turbulence in global food market, smooth flow of trade in food commodities has been severely affected," he said.

As a result, the agri-trade policy needs to be seen in the light of provisions contained in article XI of the General Agreement on Tariffs and Trade (GATT), 1994 and article 12 of Agreement on Agriculture, Pawar noted.

Agricultural products benefit from an important exception to Article XI of GATT, which prohibits the use of quotas, import or export licences, or similar measures related to the import or export of goods.

"Obviously a country like India which has food self sufficiency only at the margin, has to ensure that substantial hikes in global food prices do not result in domestic shortage due to export," the agriculture minister said.

India banned shipments of wheat in early 2007 and of non-basmati rice in April 2008 to bolster domestic supplies amid a global food crisis.

Since restrictions on exports affect food availability in importing countries, there is a need "to evolve some policy to balance the interest of exporting and importing countries in such a situation," Pawar suggested.

India has opted for trade liberalisation that integrates domestic prices with the trend in international prices but offers protection against high volatility, he added.

Pawar mentioned that Indian commodity derivative markets weathered the recent global financial crisis far better than many of its western counterparts, primarily due to a stringent regulatory regime in the country to combat price manipulation and excessive price volatility.

The recent G-20 meeting was held in the backdrop of high global food prices since 2008. The members have agreed on the common 'Action Plan' to reduce price volatility, mitigate the impact on vulnerable countries and create a mechanism for better global coordination.

India is expecting a record foodgrain output of 235.9 million tonnes in 2010-11.