May 5, 2006

India to tender for 3 million tonnes of wheat next week
 

India would float a tender for the import of 3 million tonnes of wheat within a week, a senior food ministry official said on Thursday (May 4), as a measure to contain rising prices.

Wheat prices have climbed to 935 rupees per 100 kg (US$20.8) from about 770 rupees (US$17.2) a month ago.

The purchase of 500,000 tonnes of the grain from Australian exporter AWB Ltd so far has failed to bring prices down

Indian officials had initially said the first shipment of 50,000 tonnes contained high levels of pesticide and were unfit for human consumption. However, the issue has since been resolved and the shipment was deemed fit for consumption.

The controversy had sowed fears that fresh import tenders could be delayed.