WASHINGTON: India is not selling any rice to Cuba; the Indian embassy here has told the US administration while the US has not yet formally informed India about its reported decision not to subsidize a proposed wheat sale to India,

The sale itself can go through The problem is that without a subsidy from the US government, under its export enhancement program, the price of US wheat would to0 high for India, which needs the wheat to boost is buffer stock in an effort to be prepared for possible inflationary pressure on food prices. “Clearly, a lot of misunderstanding has cropped up where it shouldn’t have,” said a US administration official, who detined to be named, “Indian, normally, wouldn’t qualify for a subsidized sale under the existing rules. But that can be discussed. It should have nothing to do with any Indian deal with Cuba. The Indians have any case said they are not selling any grains to Cuba.”

The US agriculture secretary, E. D. Madigan, apparently is not keen on providing India with subsidized wheat. His remarks about India reportedly sending rice to Cuba could be an excuse not to sive a subsidy to India for a one time wheat sale, For American

Russia or China would be better utilization of the subsidy. The Indian embassy has informed the state department, the department of agriculture and the national Security Council that India “is not selling any food grain to Cuba”, Lalit Man Singh, deputy chief of mission said. No formal response has come yet from the agriculture department.

On March 2, Madigan had said Indian exchange with press correspondents that India was not a “regular customer” of US wheat and the proposed deal with India was a one-time and “Very special case.” The export enhancement program was however, intended “to maintain our market share in our traditional markets and to compete with European subsidies,” the secretary said, “India is not a traditional wheat market for US”, he pointed out, “But they can buy wheat from us.”

About the reported Cuban deal, Madigan said “India said they were going to give rice to Cuba.

Article extracted from this publication >> March 20, 1992