Wheat import norms to be eased

The central government has decided to further relax wheat import norms ahead of the next purchase order to encourage more companies to bid for wheat contracts. The order, which is expected to be floated soon, will incorporate the changes.

"The Cabinet on Friday concurred with the stance of the agriculture ministry that it will not raise objections if the wheat consignments conform to the Codex standards," an official said.

Codex standard is an international food standard accepted by 146 countries, but is not legally binding.

The decision to relax the norms is significant as only last week, the United States had made a strong pitch to dilute the technical specifications for American companies.

The issue was discussed by US Deputy Trade Representative Karan Bhatia during India-US trade policy's fourth meeting, in the capital.

The US said fumigation norms imposed by India on its wheat imports were too stringent and it was difficult for US firms to meet these norms for supplying wheat to India.

The tender conditions included fumigation with methyl bromide, a chemical which is not allowed to be used as per international conventions.

India had until now contended that the chemical was required to eradicate certain pests found in the US. These pests thrive in tropical climates prevalent in the sub-continent.

New Delhi received a total of eight bids for the last tender to import 3,000,000 tonnes of wheat. Of the eight bids, only two companies qualified on technical grounds.

Australian firm AWB was given a contract for 500,000 tonnes while Swiss company Agrico Trade and Finance was awarded a contract for 300,000 tonnes of wheat.