October 30, 2006

 

US still disadvantaged in wheat sales to India

 

 

US wheat exporters are still at a significant disadvantage when it comes to selling wheat to India despite negotiations to improve trade conditions between the two countries, US government and industry officials said Friday (Oct 27).

 

US Department of Agriculture officials have been able to get India to loosen some of its restrictions for importing US wheat, USDA trade specialist Jon Ann Flemings said in an interview Friday, but it is not enough.

 

"The bottom line," Flemings said, is the US "cannot comply" with Indian requirements that set a nearly zero level tolerance for weed seeds in shipments. "We have not made enough progress for the US to certify with regards to weed seeds."

 

The low tolerance on weed seeds is not specific to US wheat--wheat from any origin must comply--and USDA officials said on condition of anonymity that they are puzzled as to how foreign wheat meets India's strict requirements.

 

"We would love to know that," said one USDA official, who asked not to be named.

 

India refused to accept a 50,000-tonne shipment of Russian wheat in September after it failed a quality test. The Indian government demanded the shipment be cleaned.

 

Just before USDA Secretary Mike Johanns met with Indian Commerce and Industry Minister Kamal Nath in June, he said he was hopeful new arrangements could be agreed on to make US wheat exports competitive in Indian tenders, but that hasn't happened yet.

 

US government officials are continuing an "open dialogue" with Indian counterparts to try and resolve the weed seed tolerance dispute, USDA's Flemings said.

 

A US industry official, though, expressed pessimism, saying, "India doesn't seem to be very interested in changing its requirements."

 

The Indian government announced a new wheat tender on Thursday for between 25,000 and 30,000 tonnes of wheat. Bids must be submitted by Nov 6.