NEW DELHI: Even as India proposes to import 50-lakh tonnes of wheat this year to augment buffer stocks for the public distribution system, talks between India and the U.S. on market access for American wheat have failed.

The Americans want India to lower its wheat quality specifications to enable it to participate in the huge order that India proposes to place in the international market.

Announcing the decision to import 50-lakh tonnes of wheat here on Thursday, Union Food and Agriculture Minister Sharad Pawar said that to enable U.S. companies to participate — which they are not able to do at present due to India's stringent quality norms — a team of senior officials led by Agriculture Secretary P.K. Mishra recently visited the U.S. for talks.

"Yes, we are talking to the Americans about the quality. They want that they should be able to participate (in tendering) as Europe and other western countries," Mr. Pawar said on the sidelines of the Annual Council meeting of the National Cooperative Development Council. He said he was not yet briefed on the outcome of the talks.

"Hurdles remain"

An American Embassy statement issued here said an agreement could not be reached market access for U.S. wheat during the recent discussions held in Washington DC. "Substantial hurdles still remain, as the United States cannot agree to import standards that are impossible to certify and are not in line with international norms."

The statement said the U.S. wheat was among the highest quality in the world and was safely shipped to over 110 nations, including every importer of significance except India. "This year, the United States is again expected to be by far the world's largest wheat exporter. By excluding the U.S. from its market, India decreases competition, which significantly raises the cost of imported wheat and translates into higher flour prices for Indian consumers," the statement said.

Norms relaxed

Last year India imported 55-lakh tonnes of wheat and relaxed quality norms on ergots and certain weeds so that countries other than Australia could participate in tender. Last week, the Government cancelled a tender for import of 10-lakh tonnes due to the high prices.

So far the Food Corporation of India and other agencies have procured 107.5-lakh tonnes against 92-lakh tonnes during the corresponding period last year. The Government has extended the period of procurement by another 15 days till June 15. Mr. Pawar expressed happiness at Uttar Pradesh returning four-lakh tonnes of wheat this year for the Central pool against 40,000 tonnes last year.

Record production

The Ministry also proposed to subsidise export of raw sugar in view of a record production (270-lakh tonnes) this year.

Mr. Pawar said a proposal was sent to the Union Cabinet for permission to divert about 10 per cent sugarcane juice, besides molasses, for manufacturing ethanol. Also, the sugar buffer of 20-lakh tonnes was proposed to be raised to 50-lakh tonnes.

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