August 9, 2006

India's companies contract imports of 1.5 million tonnes wheat

Private companies in India have contracted deals to import 1.5 million tonnes of wheat for delivery soon to the ports of Mumbai and Chennai, a government statement said Tuesday (Aug 8).

The statement did not give any details on the prices, origin, delivery schedule and names of the contracting companies.

Jun 28, India slashed the import duty on wheat for trading companies to 5 percent from 50 percent until Dec 2006 to boost local supplies and keep a check on prices.

Monday, a senior government official said the Agriculture Ministry has received applications from trading companies for the import of more than 1 million tonnes wheat at a concessionary 5 percent duty.

In India, companies require a permit from the Directorate of Plant Protection, Quarantine and Storage to import wheat.

Traders said while some companies recieve the permit for actual wheat imports, after they have reached a deal, others apply for the permit in advance, anticipating deal soon.

They said confirmed private import deals so far for delivery between September and October are estimated between only 100,000 and 200,000 tonnes wheat, mostly of Black Sea origin.

Meanwhile, state-run firms have issued four tender in less than a month seeking to import a total of 620,000 tonnes wheat.