May 21, 2004

Australia's AWB Cautious About Pakistani Wheat Sales Contracts

Australia's wheat exporter, AWB Limited, says it will take a cautious approach before signing any new contracts to sell wheat to Pakistan.

AWB says there is speculation Pakistan will announce tenders to import one to two million tonnes of wheat.

It comes just three months after 150,000 tonnes of Australian wheat was rejected by Pakistan amid claims it was infected with the disease Karnal bunt.

AWB's media manager Peter McBride says it will consider any new sales carefully.

"I'm sure grain growers would urge us to be cautious, but the vast majority of Australian wheat growers understand that we deal in a lot of markets around the world; you come across a number of issues, which we deal with effectively and efficiently.

"So we will do what's in the best interest of wheat growers regarding financial returns.

"Pakistan is a good returning market to Australia, so we'll just make a decision once we see the financial documents."