Rupashree Nanda; CNN-IBN; Oct 21, 2010
New Delhi: India's attempt at food diplomacy has met with little success. An RTI query reveals that due to various problems even Bangladesh was not interested in Indian food grains.
Bangladesh is eager to buy, India more than eager to sell the grains and the Food Corporation of India (FCI) wanting to hurry the process or so it seemed.
Now, documents accessed by CNN -IBN through an RTI reveal the much advertised export of 5 lakh metric tonne of food grain to Bangladesh as part of India's ambitious food diplomacy programme, is seriously stuck despite Finance Minister Pranab Mukherjee's promises to Dhaka.
In April this year (2010) the Government told the FCI that one lakh metric tonne of rice and four lakh metric tonnes of wheat is to be exported to Bangladesh. The Empowered Group of Ministers (GoM) approved the export but says it should be three metric tonnes of rice and two lakh metric tonnes of wheat - underlining that it was to be on a no profit a loss basis.
In July, the FCI offered to supply wheat to Bangladesh at Rs 15439.30 per metric tonne and Rs 20431.40 per metric tonne for rice. But Bangladesh said the price was too high. It also objected to sending the grain by train, demanding that it be shipped by India which would make it more expensive.
The FCI said it could not ship any grain and suggested that PSUs like the STC do so. In the interest of food diplomacy the Government modified its rules to allow the shipping.
Dhaka reported more objections, saying that the grain must be inspected in Bangladesh. But India wanted to inspection process only in India. Dhaka insisted on paying full amount for grain only after inspection but India said full payment immediately after inspection in the country.
Moreover, Dhaka wanted delivery in two months of signing contract while India wanted six months to deliver the grains.
Sources in Delhi claimed that Dhaka for political reasons was not keen on taking Indian grain. But an unusual communication by the Ministry of External Affairs to the FCI hinted at something else. It referred to reports to Bangladeshi media about poor quality Indian grain and warned.
"Keeping in mind their sensitivities and the possibility of opposition drawing political mileage. I would be grateful if FCI could ensure that we dispatch good quality food grain to Bangladesh" Bangladeshi media reported.
In the meantime the STC has cancelled the tenders for transportation of the food grain from India to Bangaldesh because all the four tendering parties quoted the same price.
Clearly, there is an indication of collusion of interest between vested parties. The tenders have been floated again but where exactly do this leave India's food diplomacy and rising food stocks.
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