Press Releases 2007

Indian Wheat Import Requirements are Costly to Indian Consumers

July 10, 2007

NEW DELHI -- We are very disappointed that the Indian government's Committee of Secretaries and Ministry of Agriculture officials have decided against bringing India's unrealistic wheat import phytosanitary requirements in-line with international standards.

India's very low weed seed standard is nearly impossible for any global exporter to meet, raising questions about the reliability of India's import inspection process.  The U.S. calls upon the Government of India to conduct independent tests of imported wheat arriving in Indian ports to verify that these standards are truly being met.

The high cost to Indian consumers of these overly stringent rules is very clear.  In purchases made last year, India paid 10 to 20 percent more for wheat than their comparable Egyptian counterparts.  The prices being offered to India in the most recent import tender are significantly greater than recent purchase prices by other wheat importing nations.

There is no doubt that India's current standards translate into higher bread and flour prices for Indian consumers.  The total cost savings to India from relaxing norms and including U.S. wheat in tenders last year, would have resulted in $65 to $85 million in savings.