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 United States on market access for U.S. 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 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 visited the U.S. recently 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 meeting of the National Cooperative Development Council. He said he was not yet briefed on the outcome of the talks.

An American Embassy statement issued here late on Thursday evening said India and the U.S. did not reach an agreement on market access for the U.S. wheat during the recent bilateral plant health discussions held in Washington D.C. "Substantial hurdles still remain, as the U.S. 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 U.S. 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 U.S. Embassy statement said.

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 of wheat due to the high prices quoted.

So far the Food Corporation of India and other agencies have procured 107.5 lakh tonnes of wheat compared to 92 lakh tonnes during the corresponding period last year. The Government has extended the period of procurement by another 15 days till June 15 on the request of Punjab and Haryana.

Mr. Pawar expressed happiness at Uttar Pradesh returning 4 lakh tonnes of wheat this year for the Central pool against 40,000 tonnes last year.

The Ministry also proposes to subsidise export of raw sugar in view of a record production (270 lakh tonnes) this year. The sugar industry had sought permission to export 8 to 10 lakh tonnes of raw sugar.

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