Australian Wheat Sales To India

Press, Volume CVI, Issue 31234, 5 December 1966, Page 17

Australian Wheat Sales To India

(N.Z. Press Association—Copyright) WASHINGTON, December 4. The Indian Government was reported today to have arranged the purchase of 150,000 tons of wheat from Australia, and to be negotiating for another one million tons on commercial terms.

Although such a deal would help the hard-pressed Government of Mrs Indira Gandhi to stave off famine next January it would add to New Delhi’s financial burdens. The Indian Government has recently asked the United States, Canada, Australia and Russia for new food shipments on as favourable terms as possible because of its dwindling grain stocks and a drought in North-central India.

Canada said it would give 21 million dollars worth of wheat and flour. The United States this week has been on the verge of taking action on a quick “shot-in-the-arm” agreement to supply India with about 500,000 tons of wheat and other grains to prevent a “food gap” late in January. The project is understood to be awaiting President Johnson’s final approval.

Some sources reported signs that the Soviet Union was prepared to provide up to 500,000 tons of wheat but it was not disclosed on what terms. The Indian Food Minister

reported in Parliament recently that no formal reply had been given by Moscow to India’s request for grain.