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Iraq looking into Indian wheat cargo request

Iraq is looking at a request by an Indian company for a review of a wheat cargo that has been rejected by Baghdad because of quality concerns, traders said on Monday.

"Iraq first rejected the cargo due to the presence of weevil. But the company concerned has made a representation to the Grain Board of Iraq for re-fumigation of the wheat," an exporter said.

Another trader said Iraq had yet to take a decision on the 27,000-tonne wheat shipment, which reached the country last week.

An Indian food ministry official said the government was not aware of the latest rejection of a shipment by the Iraqi authorities.

Iraq in May rejected three Indian wheat shipments.

India has promised steps to meet strict specifications set by Baghdad. It also plans to set up grain cleaning facilities at ports to boost exports.

The shipments rejected by Iraq were subsequently sold to international trading houses in Dubai, which were satisfied with their quality, traders said.

Iraq, which is under UN sanctions, is allowed to sell oil to buy food, medicine and other essentials.

Indian firms received contracts to supply a total of 350,000 tonnes of wheat to Iraq under the UN oil-for-food scheme.

India has contracted to sell 3.23 million tonnes of wheat since December and is targeting exports of five million tonnes in 2001-2001 (April-March).

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