The wheat exports to Iraq, which had been halted due to the Second Gulf War, are expected to resume next month following revalidation of the contracts.
The execution of contracts has been jinxed since May 2001, firstly due to the quality problems and subsequently due to the war, earlier this year.
"Four contracts for around 175,000 tonnes have already been revalidated upto December this year and a letter of confirmation has also been received," Arvind Pandalai, CMD, State Trading Corporation, told PTI in New Delhi on Tuesday.
He said the demand for delivery of these contracts from Iraq is likely to come up next month.
India has orders to export around 600,000 tonnes wheat in two different tranches, either directly by STC or by private traders through the company at prices of $203 and $212 a tonne, respectively for governorate delivery in Iraq.
Pandalai said it is likely that under the new regime, the delivery will be on a cost and freight basis at the Umm Qasar port instead of the governorates.
He said the company has another order of over 100,000 tonnes wheat export to Iraq, which was awarded just before the war broke out and is yet to be revalidated.
Before the war, a delegation of the Grain Board of Iraq led by its chairman Yousif M Abdul-Rahman had visited India and expressed satisfaction over its wheat cleaning facilities.
Rahman has been elevated as minister in the current Iraqi regime and one of the GBI directors - who was also part of the delegation - is now its chairman.