May 25, 2006

 

Two companies qualify to supply wheat to India

 

 

The Indian government said Thursday (May 25) that two of eight bidders who responded to its recent wheat tender are technically qualified to supply wheat to the country.

 

"Earlier we were worried that we would not be getting any wheat, but now two companies have agreed to meet all our conditions," Junior Food Minister Akhilesh Prasad Singh told reporters.

 

India issued a wheat import tender for 3 million tonnes May 8.

 

The two companies that have qualified are Agrico Trade SA and Australia's AWB Ltd, which will be supplying India with 1.7 million tonnes of wheat.

 

Singh said that of the 1.7 million tonnes, AWB has qualified to supply 1.2 million tonnes, and the remaining amount by Agrico Trade of Russian origin.

 

"If we are not able to garner the targeted volume of 3 million tonnes, we will issue another tender for further imports," said the minister.

 

Separately, Singh also said the delayed delivery of 408,000 tonnes of wheat from Australia is expected within four-to-five weeks.

 

"This is our assessment. We are hopeful," he said.

 

Of the total supply of 500,000 tonnes wheat to be supplied by AWB by mid-May, only 92,000 tonnes has reached Indian shores so far.

 

Singh said the delivery has been delayed over quality certification from the Australian Quarantine and Inspection Service.