September 14, 2006

 

US seeks changes in India's wheat import norms

 

 

The US has again sought changes in India's import regulations to enable it to sell to the country, a senior Indian government official said Wednesday (Sep 13).

 

"The US ambassador discussed the issue with India's Food Minister Sharad Pawar recently as American exporters seem to be keen to sell their wheat (to India)," the Indian government official told Dow Jones Newswire.

 

He said the US has suggested changes in rules on plant protection and quarantine, or PPQ, relating to wheat imports but it will be difficult for India's agriculture ministry to accept them.

 

Officials at the US embassy in New Delhi could not be reached for comment.

 

India's federal government has already contracted imports of 5.5 million tonnes wheat since February and Agriculture Minister Sharad Pawar said there are no immediate plans to make any further purchases.

 

Canada and Australia have emerged as two of the largest suppliers of wheat to India followed by countries in eastern Europe and around the Black Sea.

 

Over the weekend, India's federal government lifted the import duty on wheat to encourage private trading companies, flour, bread and biscuit manufacturers to import to boost supplies.

 

"The US is eyeing private wheat importers in India and we want them to actively participate in the country's purchases but we have already drastically relaxed our norms since the first tender was issued in February," said the Indian government official.

 

The US's concerns relating to DON toxin and fumigation of cargoes have already been addressed by India, the official said.

 

The farm scientists in India are unhappy with the relaxation of norms as they fear this could lead to entry of exotic weeds in India's wheat fields, the official noted.

 

He said it is time now for the US to consider changes in its export certification procedures.

 

There haven't been any wheat imports from the US due to US concerns over procedures related to sampling of cargoes for quality testing and rules relating to weeds in India.

 

Since India resumed wheat imports in February after a gap of over six years, the two countries held talks on the trade potential.

 

India is expected to purchase 8.5 million tonnes by Mar 2007, including purchases by private trading and processing companies.