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This is an archive article published on May 3, 2006

First lot arrives, US plaint makes India relook wheat import norms

With India going to the international market to now import 30 lakh tonnes of wheat, the government is considering changing the import permit specifications.

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With India going to the international market to now import 30 lakh tonnes of wheat, the government is considering changing the import permit specifications. When the first import consignment of 5 lakh tonnes was announced in February, only one company, Australian Wheat Board, qualified for the tender.

Amid hectic lobbying by the US government for a share of the import pie, there is concern over the fact that AWB may not be able to supply at the same rate as last time — the landed price was Rs 950 per quintal.

The specifications in the permit then asked for certain phyto-sanitary measures that meant the US companies could not even bid. Since then, US historically being the largest supplier of wheat to India, has been asking for a rethink. Ambassador David Mulford met Sharad Pawar in February and the Cabinet Secretary a month ago. Various US representatives from Federal Grain Inspection Service and the USDA have met officials in the agricultural ministry.

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The Under Secretary of State in the US Department of Commerce raised the issue with the commerce secretary yesterday. Agriculture Officer Chad Russel in the US Embassy will submit his list of specifications to the Ministry of Agriculture this week. These efforts assume significance given that the government is considering 20 lakh tonnes of import in addition to the 30 lakh tonnes already announced.

Washington’s main bone of contention is that India wants wheat to be treated with methyl bromide instead of aluminium phosphine that the US uses for pest treatment. The US had raised objections to the way the tender was specified to ‘‘suit the Australians’’. While the tender said ‘‘free from weed’’, the contract when signed with AWB for 5 lakh tonnes said ‘‘essentially free from’’ leaving scope for ambiguity.

Meanwhile, the first shipment of 14,000 tonnes of wheat was today cleared at the Chennai port. The samples were sent to CFTRI Pune for testing and were cleared by both the Plant Quarantine and the Health Officer of the port, confirmed Food Secretary R N Das. Work is on to finalise the terms for the fresh tender.

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