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Philippines buys 10,000 tonnes of Indian wheat

The Philippines has bought about 10,000 tonnes of wheat from India for Dec/Jan shipment, in what is believed to be the first wheat purchase from India in four years, regional traders said on Thursday.

"The deal was finalised at prices between $122 to $126 a tonne C&F," a Singapore trader said.

Grain and feed trade houses in Manila confirmed the deal.

"The Philippines has bought about 10,000 tonnes of wheat from India for Dec/Jan shipment," said a grain importer in Manila.

According to sources at the Philippines Association of Flour Millers, the Philippines last bought wheat from India in 1996, when it took delivery of a little more than 30,000 tonnes.

Traders in Singapore and India said they were hopeful that there was potential for more trade between the two nations.

"Negotiations are on for some more deals," said one Indian grains exporter.

Earlier on Thursday, trade officials in Manila had said slower growth in demand for noodles and biscuits in the Philippines due to a weak currency and political uncertainty would keep wheat imports in check in 2001.

The Philippines annually imports a little more than two million tonnes of wheat, with the United States accounting for more than 70 per cent.

India recently sold to Iraq, Bangladesh too

India, faced with huge grain stocks, also received export orders recently for 350,000 tonnes of wheat to Iraq under the UN Oil-for-Food programme. That wheat is to be delivered over the next four to five months.

In addition, India's state-run MMTC Ltd recently booked a fresh sale of 40,000 tonnes of wheat to Bangladesh.

That followed earlier sales of 25,000 tonnes for Dec delivery to the same country.

India's foodgrains stocks were 40.06 million tonnes at the start of October, of which nearly 22 million were buffer stocks. Wheat accounted for 26.85 million tonnes of total grain stocks and rice 13.21 million tonnes.

Traders have estimated that India could sell up to one million tonnes of wheat by March 2001, mostly to the Middle East.

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