Wheat Exports To Iraq Hinge On Quality Norms

The resumption of wheat trade to Iraq rests on the approval of the grain cleaning facilities by the west Asian nation. Despite individual trade deals between exporters and Iraqi authorities for relaxation of quality norms, the government is playing it safe.

The trade would not be resumed until Iraq was satisfied with the quality of grain and cleaning facilities. The government did not want to face another rejection.

"Unless the representatives of the Grain Board of Iraq (GBI) personally inspect the three wheat cleaning facilities set up here we are not prepared to begin export to it," said consumer affairs, food and public distribution minister Shanta Kumar.

Iraq had rejected three wheat consignments in May this year over quality issues. This had led to India stopping the shipments to Baghdad until arrangements were made to clean the grain. The exports to Iraq had been stalled because of questions on quality specifications, Kumar said.

"Iraq is a huge market and currently Australia has a monopoly there. However, our wheat suits their taste and requirement and we hope the matter on quality is resolved soon," he remarked.

Iraq plans to import around four million tonne wheat to meet the surging domestic demand, traders say.

According to them, GBI had extended the date for the movement of contracted quantities to March 2002 from September 2001. Iraq had also relaxed the norms for wheat import from India, allowing a maximum of 0.5 per cent foreign matter against its earlier stand of zero per cent foreign matter in the consignments.

However, the food ministry officials said they that they were yet to receive any communication on this from Baghdad.

Traders are insisting on the immediate resumption of exports saying that their lines of credit would expire in March 2002 and they would be subjected to penalties. Exporters have contracts for six lakh tonne wheat and there was an estimated potential to ship two million tonne annually, they stated.

India's efforts to resume sales suffered a setback with GBI officials canceling the September visit. The country would soon be sending an invitation to Iraq through the external affairs ministry so that the officials could come and check the quality of grain here, the minister said.