MIL general manager Anthony Couroupis yesterday issued a statement confirming that the company had entered negotiations for the bulk sale of water entitlements under the company's Offer of Water Entitlements for Sale initiative.

Mr Couroupis said details of the negotiations were commercial-in-confidence, and therefore could not be commented upon, but it is believed the second party is the Federal Government.

Murray Irrigation Limited provides irrigation water to more than 2400 farms in southern NSW, stretching from Mulwala in the east to Moulamein in the west, taking in nearly 748,000 hectares of farmland north of the Murray River.

When the sale process was announced in March, MIL was offering a package of 50,000 entitlements, but it is believed a number of farmers pulled out wanting a better price.

At the time the company was hoping to achieve $70m from the sale.

However, Mr Couroupis said yesterday the Offer of Water Entitlements for Sale initiative was offered to members to achieve the best possible price for the bulk sale of Water Entitlements.

"This remains the goal of the initiative," he said. "The current negotiations have progressed to an encouraging point."

Under Murray Irrigation's Offer of Water Entitlements for Sale initiative launched early this year, member customers submitted expressions of interest to the company in selling parcels of their water entitlements for a reserve price.

The company then appointed Buyer Bid Facilitator Landmark Mills to market the bulk parcel on behalf of Murray Irrigation.