Looks as though the million tonne contract may not be a foregone conclusion after all to the US.
---------------------------------------------------------- Iraq may look for non-AWB wheat From correspondents in Baghdad February 14, 2006 IRAQ today indicated it could seek wheat from Australian suppliers not connected with AWB after cancelling a contract with the US.
The Iraq Grains Board (IGB) has suspended dealings with the monopoly wheat exporter pending the outcome of the Cole Commission into AWB's kickbacks to the Saddam Hussein regime.
An official from IGB said today that it had cancelled plans to tender for one million tonnes of US wheat and would now look to European, Canadian or Australian suppliers instead.
"It has been cancelled because the American prices were too expensive. First they wanted $US190 ($257) per tonne then $US200 ($271), which is too high," the official said.
"We will try to get it from Europe or Canada or other Australian companies."
The official said Iraq would consider offers from Australian companies other than AWB. It would launch the tender soon, he said, giving no specific date.
But there is confusion over who the IGB would deal with in Australia, as AWB has the monopoly to export wheat.
The Iraqi official said the IGB had 1.2 million tonnes of wheat reserves, enough to last four months.
The IGB has suspended its relationship with AWB until retired judge Terence Cole finishes investigating almost $300 million in kickbacks paid to Saddam's regime under the oil-for-food program in breach of United Nations sanctions.
With AAP
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