India's State Trading Corp on Thursday offered to buy 330,000 tonnes of wheat from Swiss firm Agrico Trading at $209.75-214.75 per tonne, cost and freight, depending on the port of arrival, a top official said.
The STC, which shortlisted 8 bidders against its latest wheat tender for 400,000 tonnes, has decided not to buy from the other firms, he said. Agrico was the lowest bidder in response to the tender floated at the end of July.
It had bagged a deal to supply 300,000 tonnes of wheat at prices ranging from $198.20-199.20 in an earlier tender. Traders said about 1.5 million tonnes had been offered, with prices ranging between $210 and $239 per tonne, cost and freight, at least $12 to 15 per tonne higher than in previous tenders.
The highest quantity offered came from privately-owned Cargill Inc with 340,000 tonnes, while Australia's AWB Ltd bid for 220,000 tonnes. Agrico had offered to supply 200,000 tonnes. Other bidders included Toepfer, Concordia, Glencore and two other international firms. The wheat is meant to boost run-down stocks the government uses to provide grains to the poor at discounted rates and, occasionally, stabilise prices.
State-run PEC Ltd was also likely to finalise a deal for the import of 50,000 tonnes wheat, on behalf of private parties, within a day. A top government official said supplies of imported wheat were arriving in good quantities and supply problems in the domestic market should soon be easing.
Food Ministry officials said about 765,000 tonnes of wheat were expected to reach Indian ports by the end of this month. They said private traders had also contracted for the import of 150,000 tonnes of wheat to be delivered shortly at Mumbai and Chennai ports.
India concluded a 2.2-million-tonne wheat import deal in June - with five international bidders - in the price range of $196 to $205 per tonne, cost and freight. This latest tender is the fourth floated by the STC since February. The wheat will have to arrive between September and October at the four southern ports of Vishakapatnam, Chennai, Kochi and Tuticorin.
Officials have managed to buy just 9.2 million tonnes of wheat from domestic farmers this year against original estimates of 16.2 million as market prices stayed above those offered by state agencies.
India resorted to wheat imports for the first time in six years after production in the 2005/06 crop year fell sharply. According to the latest farm ministry estimates output was expected to be around 69.48 million tonnes against a target of 75.5 million tonnes.
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