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June 21, 2001
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Government halts wheat sales to Iraq on quality worries

India has stopped wheat exports to Iraq until it is able to improve quality standards, the food minister said on Thursday.

Iraq rejected three wheat cargoes from India in May because of quality concerns and one consignment is awaiting approval of the Grain Board of Iraq after weevil was found in the grain.

"It is not in the interest of the country so we have ordered that no wheat exports to Iraq should take place. We will start only after setting up new cleaning facilities that match Iraq's standards," Food Minister Shanta Kumar said.

The minister said state-run Food Corporation of India has been asked to set up cleaning facilities at Kandla port.

Indian firms won contracts to supply a total of 350,000 tonnes of wheat to Iraq under the UN oil-for-food scheme. The programme allowed Iraq, which is under UN sanctions, to sell oil to buy food, medicine and other essentials.

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