Iraq wants Indian wheat to be re-fumigated

By Gargi Parsai

New DELHI, APRIL 30. The Ministry of Food has sought a clarification from the State Trading Corporation (STC) on reports of Iraq not accepting two vessels of Food Corporation of India wheat on grounds of quality.

Although the STC was only involved as a ``facilitator'', it has been asked to submit a report. Official sources, however, told The Hindu here today that the consignment shipped by a Ahmedabad- based private company, M/S Vishal Exports Overseas Limited, was held back at a Dubai port en route Iraq as it was said to have been infested. The company has been asked to fumigate the consignment of 23,390 tonnes, for the mandatory period of 144 hours and cleaning it up before re-presenting the stock. Apparently, the consignment had been fumigated - as is the norm - but was opened before time.

When asked, the Minister for Food and Public Distribution, Mr. Shanta Kumar, said the inspecting company appointed by the Grain Board of Iraq (GBI) had certified at Mumbai that the grain fully met the quality requirements and also CODEX standards. ``If there is any difference of opinion, it is between them. We should not be maligned unnecessarily.''

India's concern is genuine as it is trying to enter the international wheat trade under the World Trade Organisation regime. Already it faces a complaint in the WTO by USA about wheat export price and involvement of public sector undertakings. The Government is, therefore, making all efforts to keep up its image in the face of reports about Iraq's ``rejection'' of the consignment.

The Grain Board of Iraq had placed contracts for the supply of 3.5 lakh tonnes of wheat with 8 Indian exporters, including the STC which was to supply 70,000 tonnes. The private exporters sought STC's expertise as a facilitator to procure stocks from the FCI. They contracted at a higher rate of Rs. 4,340 per tonne and took the responsibility of selecting stocks, pre-shipment quality inspection and loading. As such the exports by the 7 private companies was on their own account, sources said.

Burdened with surplus foodgrain stocks, the Government had decided to export wheat. According to the Secretary, Ministry of Food and Public Distribution, Mr. R.D. Kapur, about 33 lakh tonnes had been exported from November last, mostly to the Middle East, Russia, Bangladesh, Korea, Philippines and Sri Lanka.

Even 72,000 tonnes of FCI rice had been contracted, of which 40,000 tonnes has already been exported. The Government proposes to export about 50 lakh tonnes of wheat and 20 lakh tonnes of rice to offload stocks and reduce carrying costs.

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