Low quality wheat being imported?
September 17, 2008 00:00:00
Syed Ishtiaque Reza
A section of private traders is reportedly importing low quality wheat, which is not suitable for human consumption, from Ukraine and Russia.
According to sources, the wheat that is being imported is used as animal feed in those countries. The wheat is not suitable for human consumption as it contains less than 11 per cent protein. Anything having less than 11 per cent protein is considered as animal feed, sources said.
Some letters of credit (LCs) opened for importing wheat from the two countries contains 9.5 per cent protein.
Director General of Food Department Pius Kosta said the government itself is importing nearly 200,000 tonnes of wheat from Russia, which are of high quality.
He said he has no idea about from where and what quality of wheat is being imported by the private importers. He, however, agreed that there lacks a system to check or monitor the quality of the imported wheat by the private sector.
When the good quality of wheat is selling now at US$355-370 per tonne the low quality wheat is prices at $305-315 per tonne.
The joint forces had held a number of private importers immediately after 1/11 for importing and selling low quality wheat. Market insiders said that there should be a check against such imports.
The government recently issued an international tender to import 100,000 tonnes of wheat and the tender will close on October 10. Earlier, the ministry of food on August 12 issued a separate import tender for 100,000 tonnes of wheat, which closes on September 23.
The government plans to import 800,000 tonnes of wheat in fiscal 2008-09 to raise the emergency wheat stocks to 2.0 million tonnes from the current level of 1.2 million tonnes.