Iraq looking to import rice, sugar from India.

NEW DELHI: Iraq is considering buying rice and sugar from India, the gulf nation's deputy Prime Minister Rowsch Shaways said here today.

"We are looking to buy rice and sugar...Just before two months, we bought 1,00,000 tonnes of rice from India and we continue," Shaways told reporters after meeting Commerce and Industry Minister Anand Sharma, here.

India is the world's second biggest producer of these two food items.

New Delhi allowed export of non-basmati rice from September onwards as the country's output is expected to be a record 102.75 million tonnes in 2011-12 crop year (July-June).

Similarly, sugar exports of two million tonnes have been permitted in 2011-12 marketing year (October-September) as production is estimated to be higher at 26 million tonnes as against the annual demand of 22 million tonnes.

On India's oil imports from Iraq, Shaways said that India's share in oil imports is expected to double in future with increase in Iraq's oil production.

"The oil industry is developing in Iraq and in the coming years, the production will increase...to double or even more. So, my expectation is that in future, once we reach new production level, India's share will double," he said.

India is a biggest importer of Iraqi oil. Iraq exports about 2.6 million barrel of oil per day, he added.

Asked if Iraq is looking to sign new contracts with Indian firms, Shaways said: "I think Iraqi side will be willing to sit and discuss and reach to an agreement which will be beneficial to both sides".

Source : economictimes.indiatimes.com