NEW DELHI, Feb 10 (Reuters) - India will sell an additional 200,000 tonnes of wheat to Nepal and may supply limited quantities of rice to Bangladesh, official sources said, indicating the government's confidence about food supplies and prices in the coming months. India's food prices, rising since the worst monsoon in 37 years in 2009, were up over 17 percent in January, sparking protests, but Prime Minister Manmohan Singh last Saturday said that crop outlook had brightened and food prices would be controlled.

India, the world's second-biggest producer of wheat, banned overseas sales of the grain in February 2007, but lifted the restriction last July for a few days, but no export deals were struck. Exports of common grades of rice were banned in 2008.

A state-run firm would soon be allowed to export an additional 200,000 tonnes of the grain to Nepal, government sources told Reuters on Wednesday.