Government May Not Sell Australian Wheat

India is likely to import a million tonnes of wheat it has contracted from Australia despite an anticipated bumper harvest and will probably not sell it to other nations, government officials said on Thursday.

"It is very likely that the wheat would be imported from Australia, but I don't think it would be sold to other countries," a senior agriculture ministry official, who asked not to be identified, told Reuters.

India has contracted to import about 2.3 million tonnes of wheat from Australia, of which 1.3 million tonnes has already arrived. Another one million tonnes is due for arrival after July.

 

Union agriculture minister Chaturanan Mishra said on Wednesday that India might sell the Australian wheat to other nations if domestic supplies and prices stayed under control. But if traders hoarded grain, the government might use the wheat to control domestic prices , he said.

The senior agriculture ministry official said on Thursday it was not easy to find buyers for a million tonnes of wheat. "Somebody has to be in the market. Finding a buyer for such a huge quantity is not easy" he said.

Mishra said on Wednesday that wheat output in 1996/97 (July-June) would be about 68.71 million tonnes, revised must higher from an earlier estimate of 64.66 million.

He said state agencies were expected to buy about 9.5 million tonnes of wheat for sale in 1997/98 compared with 8.2 million last season.

Analysts said India may not import more Australian wheat after an anticipated record harvest and expected state buying of 9.5 million tonnes. "With procurement above nine million tonnes and expectations of a record crop, additional imports will not be necessary," said Shashank Bhide, a senior economist at the National Council of Applied Economic Research. (Reuter)