Australia examining big India wheat tender-AWB

SYDNEY, May 9 (Reuters) Australia's monopoly wheat exporter AWB Ltd. is expected by the market to bid in a tender by India for 3 million tonnes of wheat, although the company said on Tuesday it has not yet made a decision.

''We'll look at the terms and conditions,'' AWB spokesman Peter McBride said on Tuesday. AWB would then decide whether to bid.

AWB was investigating further sales to India after recently completing a sales deal for 500,000 tonnes, Ian Donges, newly-appointed head of AWB (International), the export arm of the group, said last month.

Chicago wheat futures traders said on Monday that Australia was a likely supplier in India's big new tender, but that the United States could also get a share of the business.

Indian officials alleged late last month that Australian wheat in a 50,000 tonne shipment contained high levels of pesticide. The complaint was withdrawn when tests showed the wheat was safe to eat.

India's big wheat tender is aimed at reining in domestic prices and replenishing warehouse stocks after a shortfall in local production.

Australia, the world's second-largest wheat exporter, is in sharp competition with leading exporter the United States for wheat export markets around the world. Australia has a freight advantage in sales to India.

REUTERS CS ND0918