Ministry Officials Question Wheat Import

Officials at the agriculture ministry question whether there was any need to import grain, even as ships carrying wheat stocks from Australia, Canada and Argentina anchor Indian ports.

They pointed out that per capita net availability of wheat was higher in 1996 than in 1995. The per capita net availability of wheat during 1996 is estimated to be substantially higher than in the last five years or more.

The government last December decided to import up to 2 million tonnes of wheat during 1996-97 and a quantity of 16.75 lakh tonnes was contracted for import between January and April this year, the official stated.

The new consignments of 9.96 lakh tonnes of wheat are expected to arrive any day, the official said.

The officials involved in the wheat import, however, contend that the State Trading Corporation of India, which was authorised by the government to import wheat, had made the purchases only after proper tenders were floated amongst leading foreign traders.

The officials stated that the contracting was done by the corporation after inviting tenders from international grain traders, including publication in newspapers. Before finalising purchases, the prices were negotiated with the tenderers, said one official. The prices at which the deals were finalised were quite competitive vis-a-vis the prevailing international prices.

For instance, the first import contract from Australia was realised at a price of $148 per tonne FoB (freight over board) as against the offered price of $156 per tonne FoB, the official said.