March 22, 2006

Iraq's Australian wheat deal not yet complete

The Grain Board of Iraq said Tuesday (Mar 21) a planned purchase of 500,000 tonnes of Australian wheat has not been completed, as it is awaiting non-AWB suppliers to submit a price.

"The Australians had asked to extend the time for submitting a price...until March 20," the official said.

The Grain Board still does not know if the Australian suppliers have submitted a price, as Tuesday is a national holiday in Iraq, the official added.

Earlier this month, the non-AWB suppliers had told the board they would submit a price by Mar 15.

Baghdad suspended wheat purchases from Australia's wheat monopoly AWB until the completion of an inquiry into whether it broke Australian law by paying massive kickbacks to Saddam Hussein's regime under an oil-for-food programme operated by the UN.

Baghdad is, however, ready to buy non-AWB Australian wheat.

Suppliers outside the AWB recently set up a new company named Wheat Australia Ltd to undertake wheat exports to Iraq. Wheat Australia is a consortium comprising GrainCorp Ltd, ABB Grain Ltd, and unlisted Cooperative Bulk Handling Ltd.