India Will Import 500,000 MT Wheat

NEW DELHI - Feb 2/06 - SNS -- The Indian government authorized the State Trading Corp. Of India Ltd. (STC) to import 500,000 metric tons (MT) of duty-free milling wheat this year.

In announcing its decision, the government noted wheat stocks in the central pool on February 1 totalled 4.7 million MT, which are adequate to meet the needs of the PDS and welfare schemes till fresh procurement commences in the last week of March 2006.

"However, keeping in view the fact that open market prices of wheat are ruling high, the additional need for market intervention and as the Government is firmly committed not to compromise in the matter of food security, it has been decided to augment the domestic availability of wheat by import of 500,000 MT of wheat initially," the government said in a statement.

Wheat would be imported by the STC only to Southern ports of Chennai, Tuticorin and Kakinada. No wheat is produced in these areas and open market prices now range between Rs. 1100 to Rs. 1200 per quintal or U.S. $249 and $271 MT. "There will be no imports of wheat to any other port. The situation will be reviewed again in April-May 2006," the official statement said.

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