The Canadian government last week said it will sell $250 million worth of wheat on credit to economically reeling Indonesia.
It will preserve Canada’s share of the market in the third-largest national buyer of Canadian wheat.
It also will promote Canadian humanitarian goals to feed Indonesians during an economic crisis compounded by drought, the government said.
“Indonesia is confronting a food shortage caused by drought, increased prices, distribution difficulties and a limited ability to import essential foodstuffs,” said foreign affairs minister Lloyd Axworthy.
Canadian Wheat Board information officer Tracy Bryksa said the credit will be used to negotiate a new sale with Indonesia, which last year purchased 1.5 million tonnes of wheat, next only to Iran and China.
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“They are a valued and a big customer,” she said April 3. “There is not a sales deal now or a contract but a team is there now negotiating.”
If fully used, the line of credit could help buy close to 1.5 million tonnes.
Agriculture minister Lyle Vanclief said the Indonesians are being offered better than commercial terms.
According to information tabled recently in the Senate, outstanding wheat board credit sales guaranteed by the federal government are worth $6.6 billion.
