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High price or not, wheat imports to continue in India

Wednesday, 18 July 2007


NEW DELHI, July 17 (PTI): Agriculture Minister Sharad Pawar, weathering allegations over wheat imports, yesterday said the government will continue purchases from abroad even if the price was high but not compromise on quality in its quest to build stockpiles.
"We are going to buy wheat on a regular basis. This is a conscious decision that government has taken... When the question of feeding our population comes, price will not be the issue," he told reporters here, although the opposition BJP has alleged a scam and sought his resignation.
The government had announced its plan to import 5 million tons of wheat this year to build buffer stocks and the State Trading Corporation last week contracted a little over half a million tons of wheat at USD 317-330 a tonne.
It had cancelled a tender last month though the price quoted was around USD 263 a tonne.
"The government could have bought wheat at a cheaper rate from the US but it decided not to dilute the quality norms (as it would have facilitated entry of weeds)," Pawar told reporters at the foundation day celebration of the Indian Council of Agricultural Research.
"If we had allowed American wheat into the country, we would have got at cheaper rates," he said, adding that there was demand from US to dilute the phyto-sanitary norms, which was approved long back by the government.
"Our scientific community's considered view was that we should not dilute up to that level, especially when (it would have allowed entry of) a particular type of weed that might affect Indian agriculture," Pawar said.
"If other countries like Argentina, Canada, Australia, Russia and Ukraine are ready to honour India's phyto-sanitary guidelines so why not US," Pawar asked, adding that "when US did not accept, the government decided not to allow (US wheat) that has definitely reflected in the prices.
He also made it clear there was no food shortage in the country and the imports were only aimed at ensuring a comfortable buffer stock to meet contingencies.
"This year we have procured 11.1 million tons and we have about 4.6 million tons of carry over stock which will fulfil the requirement of the country's public distribution system," Pawar said.