MMTC now floats 1.2 l-t wheat tender

NEW DELHI: Weeks after food and agriculture minister Sharad Pawar asserted that there would be no more wheat imports on government account, public sector trading company MMTC has floated global tender for importing 1.1 lakh tonnes to 1.2 lakh tonnes of wheat. The tender closes on August 17.

Meanwhile, the STC has clinched the deal with the Geneva-based Agrico Trade and Finance for import of 3.3 lakh tonnes of wheat at a steep $210-$212 per tonne. But that price was the lowest offered.

The deal, was for the tender for four lakh tonnes issued earlier by the STC, which found only one qualifying bidder in Agrico. Agrico had offered to supply two lakh tonnes earlier but later agreed to supply 3.3 lakh tonnes at 5% margin.

The MMTC tender too may get wheat at an equally high price, since India’s desperation is stark in the global market. Prices are boosted in successive tender.

The latest Agrico price, for instance, is a good 20% more than the February wheat tender. To boot, suppliers to deliver the whole quantum are hard to find now.

The MMTC tender calls for wheat import at the ports of Vishakapatnam, Tuticorin, New Mangalore and Kolkata during September-October period.

The quality specifications will be the same as used STC imports, matching Codex-standards. According to reports, a higher specification is made on protein content. This is the second wheat import tender on government account after Mr Pawar’s assertion. Earlier, STC issued a Rs 375-crore tender on July 27 that closed on August 3.

Prior to that, the government, on June 28, reduced the import duty for private trade from 50% to 5% so that flour millers and biscuit makers could import for their own needs. A subsequent Cabinet meeting rejected pressure to bring the duty down to zero on par with government imports.

The key contention of trade experts was that imports worked out economically unviable with a 5% duty tagged on. As a sop, the Cabinet later relaxed quality specifications for private sector wheat imports, but to little avail.

The decision to re-issue STC import tenders and revive government tenders appeared to have gained momentum in July, primarily from the abysmally poor response to the wheat import tenders.