September 1, 2006

 

US may soon discuss wheat sales with India

 

 

The US plans to again 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, an official from the US Department of Agriculture said Thursday (Aug 31).

 

"Along with various issues related to farm cooperation, the US ambassador (to India) plans to discuss India's wheat import programme with (India's food) minister soon," the official told Dow Jones Newswires.

 

The two countries last held talks on wheat sales in February.

 

India has emerged as one of the world's largest wheat importers in terms of volume, having received its first cargo in over six years in April.

 

The South Asian country is expected to purchase 8.5 million tonnes by Mar 2007.

 

India's federal government has implemented a 5.5-million-tonne wheat import programme, and has also issued permits for the import of almost 3.0 million tonnes by trading and processing companies.

 

However, so far, there have not been any wheat imports from the US, due to concerns over technical issues such as sampling of cargoes for testing quality and rules relating to weeds.

 

"We have a set procedure on testing samples for quality and rules given in Indian tenders are vague," said the USDA official.

 

However, an official from India's State Trading Corp (STC), the company that imports wheat on behalf of the government, said its tenders are open to internationally reputed suppliers and those offering wheat of US origin have occasionally even bid to make sales.

 

"We have considerably relaxed norms since the first wheat import tender in February, and the US's concerns relating to DON toxin and fumigation of cargoes have already been addressed," said the STC official.

 

So far, one of the STC's largest supplies in terms of volume is wheat of Canadian origin, probably grown in the neighbourhood of the US, he said.

 

On Wednesday, STC issued a tender to import 1.67 million tonnes of wheat. The tender closes Sep 5 and contracts will be finalised by Sep 13.