Worried over its failed procurement operations and anticipating a shortfall in production, the Centre has decided to invite tenders for import of 1 million tones of wheat.

According to government officials, the State Trading Corporation is likely to issue the tender this week. The officla said the government is sceptical about its procurement operations and fears that wheat will be in short supply for its public distribution system and other welfare programmes.

This would form part of the 3 million tonnes of wheat the Centre is planning to import this year to bolster its stocks.

The decision to go in for wheat imports for the second consecutive year is viewed as ringing in a regime of regular imports from now on in view of low yields in comparison with burgeoning demand from a growing population.

Global wheat prices are in tight market as uncertainty still prevails over Australia's output this year and Russian wheat is yet to come into the market. The prices in international market has risen by $20 per tonne over the last few days on news that India is likely to enter the market for big imports.

Import prices currently reign in the range of $225-240 a tonne cost and freight (c&f) but it is expected that this can go up by 10-20 per cent. With speculation over a significant shortfall in Australia's wheat production, world wheat prices are expected to be propelled higher in the global market.

For India, it would mean paying more for imported wheat through any route, futures using call options or through the spot market.