Govt not to alter post-tender norms for wheat import

Despite challenges being faced in firming up new wheat import contracts, the government has ruled out any compromise on post-tender conditions for its purchase from the international market.

"We will not change the post-tendering norms for wheat imports. That is not possible," a top food ministry official said.

"Corrigendum on wheat import norms will only be issued before the contract is being awarded in order to ensure level playing field to all the participating bidders but not later," he said.

Of 35 lakh tonne of wheat to be imported, contracts for 22 lakh tonne are yet to be awarded.

Projecting a 10 million tonne fall in world wheat production this year, the Food and Agriculture Organisation (FAO) has forecast a strong demand outlook for the commodity during 2006-07.

Of the contract for 5 lakh tonne of wheat import by India under the first phase, over 91,000 tonne have arrived at the South Indian ports.

The outstanding quantity of the wheat consignment bagged in the first round of State Trading Corporation-floated global tender would be delivered at the Indian ports shortly, the exporting firm Australian Wheat Board (AWB) said.

Originally, AWB was supposed to deliver the entire quantity of the first tender by mid-May but due to reasons related to phyto-sanitary conditions, the delivery was delayed.

AWB has expressed keenness to bid for the 22 lakh tonne global tender for supply of the grain to India depending on terms and conditions.

As against the decision by the government to import 30 lakh tonne under the second phase, 8 lakh tonne have been almost finalised.

STC, the designated canalising agency, could only garner response totalling 13 lakh tonne in the two rounds.

In the second round, the international trading company Agrico Trade and Finance offered 3 lakh tonne while AWB offered 5 lakh tonne wheat.

Agriculture Minister Sharad Pawar said last week that the Indian government would float fresh tenders for about 22 lakh tonne of wheat which it was seeking to replenish depleted buffer stock.