India, US discuss wheat safety, trade issues

Washington, May 17: A government delegation from India is holding talks with US agriculture officials this week in Washington as the grain industry here eyes wheat exports to the south Asian nation, the Agriculture Department said.

Melissa O'Dell, a spokeswoman for the Agriculture Department's Animal and Plant Health Inspection Service, yesterday said the delegation of Indian officials was meeting with USDA experts on plant health to discuss ''issues of mutual concern.'' O'Dell said she did not anticipate any major trade announcements, and described the visit as a routine visit.

Still, the delegation has registered in US grain markets, helping support hard red winter wheat basis values in the interior track market at a time when they normally decline due to the approaching harvest.

''It's an encouraging development,'' said Steve Mercer, a spokesman for US Wheat Associates, which promotes exports.

India's strict phytosanitary regulations kept out US wheat during its tenders last year, in which it bought 5.5 million tonnes of wheat. This year, India may buy 4 million to 5 million tonnes. The State Trading Corp has already tendered to buy 1 million tonnes with bids due Monday.

Among phytosanitary issues is India's concern about weed seeds. It has required lower levels than typically found in an international tender.

Even if phytosanitary issues are resolved, India has typically required inspection of the wheat at destination.

Normally, wheat is inspected by the buyer and seller at its origin before it is shipped.

Reuters>