September 4, 2006

India issues permit to import 7,750 tonnes US wheat

India's agriculture ministry has issued a permit to a company for importing 7,750 tonnes of US wheat at a 5 percent customs duty, a senior government official said Friday (Sep 1).

"Until late last week, we issued at least one permit for bringing in US wheat. The quantity is not very significant, but it indicates there is some interest to source wheat of American origin," the official said.

The official didn't disclose the name of the company it has issued the permit to, but said these imports are proposed to be delivered at Mumbai port.

He said the government would welcome if exporters from the US take more active interest in India's wheat import programme, one of the world's largest and estimated around 8.5 million tonnes in the fiscal year to Mar 2007.

In India, wheat imports can only take place after obtaining a permit from the Directorate of Plant Protection, Quarantine and Storage.

While some companies obtain permits before contracting actual import deals, others do so after the purchase deals are finalized.

An official with the US Department of Agriculture said Thursday that the US plans to take up the possibility of wheat sales to India at a diplomatic level, and the country's ambassador may soon discuss the issue with India's Food Minister, Sharad Pawar.