New Delhi: The Left parties today smelt a rat in the government decision to import nearly eight lakh tonnes of wheat at Rs 1,600 per quintal and demanded an "effective and "transparent" inquiry into the matter. The BJP has already demanded an inquiry into the import yesterday.

"It is an issue of absolute malpractice which should be looked into. We are demanding an appropriate, effective and transparent inquiry into it," CPI Leader in Lok Sabha Gurudas Dasgupta told reporters here. CPI(M) leader Brinda Karat has also written a letter to Prime Minister Manmohan Singh questioning the UPA government's decision to import wheat "at prices much higher than those prevailing in the Indian market."

Since the rabi wheat crop at an estimated 74.5 mn tonnes this year has been better compared to last year, it was possible for the government with a more farmer-sensitive procurement policy to have met the requirements for the public distribution system through domestic procurement, she said in the letter. She said the government had floated a tender for import of five lakh tonnes of wheat at $263 per tonne in May but subsequently cancelled on the grounds that the price was too high.

"However, just two months later in July the government imported the same amount at $325.59 a tonne leading to a loss of Rs 127.93 crores. Shockingly this way compounded by a further import order for almost eight lakh tonnes at an even higher rate of $389.45 which meant a further loss of Rs 412 crores," she pointed out.

"Thus the faulty policies of import have led to a loss of Rs 540.40 crores. What were the reasons for cancelling the initial order? What were the reasons for staggering the tenders when this only benefits big traders to push up prices?" she added.