August 22, 2006

AWB to clear India wheat deals before fresh bids

Australia would concentrate on wrapping up the 1-million tonne wheat sale to India before bidding for new tenders, exporter AWB Ltd said Tuesday (Aug 22).

India had been self-sufficient in wheat for the past six years until recently. The Indian government has so far secured only 9.2 million tonnes of wheat from domestic farmers this year, less than the 16.2 million tonnes required.

AWB agreed to supply India with 500,000 tonnes in March and a further 500,000 tonnes in June.

AWB spokesman Peter McBride said the company has delivered almost a third of the shipment. The rest would be shipped over the next few months into November, he said.

The company would wait for the right conditions before putting in another bid, McBride added.

Although AWB entered an unresolved bid for the sale of 220,000 tonnes in a tender by India in early August, its main focus still remains in completing shipments from the two earlier tenders of 500,000 tonnes.

The Australian exporter is also negotiating with the Iraqi Grain Board over a resumption of exports to Iraq, after Baghdad requested meetings in early August.