Indian state-run traders received as much as 10 percent higher bids than a state-set floor price for their latest wheat exports tenders, trade sources said, indicating continued global interest in supplies from the South Asian nation. Traders said Indian wheat supplies offered value as they are at least $10 a tonne cheaper than the Black Sea origin.
State-run PEC Ltd received the highest bid at $285.17 per tonne for its 35,000 wheat export tender for shipments between April 30 to May 25, trade sources said on Friday. The tender offered shipments from government warehouses at the Krishnapatnam port, on the east coast. Another offer from the same issuer for 30,000 tonnes received the highest bid at $284.38 per tonne, for shipments between April 20 and May 19 from the Vizag port, on the east coast.
Both the tenders received five bids each, said one of the sources. India, the world's second biggest producer, allowed exports of 2 million tonnes of the grain through three state traders including MMTC Ltd, and State Trading Corp, since September as part of its strategy to trim bulging stocks. MMTC Ltd received the highest bid at $281.82 per tonne for its 35,000 tonnes wheat tender for shipment by March 19, from government warehouses located on the west coast. It received six bids for the tender.
Responses have been encouraging as all bids received in the three tenders were much higher than the state-fixed floor price of $260 per tonne, said Tejinder Narang, a Delhi-based independent trade analyst. India's overseas sales of the grain through the three state traders will continue until June, said a government official, who did not wish to be named. On April 1, wheat stocks stood at 17.83 million tonnes, more than four times the target of 4 million tonnes.
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