Private traders stay away from wheat export bids

CHANDIGARH: Private traders have not shown any interest in the bids invited by food grain procurement agency Food Corporation of India (FCI) for the export of wheat stored in Punjab and Haryana, citing the base rate fixed by the Centre as high.

"We have not received any bid from private traders for the export of wheat so far," a senior official of FCI (Punjab) said here.

Similarly, FCI Haryana official also informed that no interest had been shown by private traders in the bids invited for the wheat export.

FCI had invited bids for the fourth time since export was allowed but had failed to get any positive response from traders.

The Centre had allowed wheat export of 5 million tonne for 2011-12 crop from its godowns through private traders in a bid to ease the storage burden.

The base price of the wheat to be exported Under Open General Licence (OGL) from the Punjab and Haryana has been fixed at Rs 1,484 per quintal.

Describing the base rate fixed for wheat as high, private traders said unless the Centre brought down the rate there is no viability for them to export.

"The government has set a very high rate for wheat export via private traders. It should be reduced at least to Rs 1,200 per quintal so as to encourage private traders to export wheat," said a Khanna-based wheat trader Raj Sood.

Sood said after adding transportation, loading and other expenses into the base rate, it would be unviable for them to export.

"We will have to bear over Rs 200 additional expenses over and above the base rate of Rs 1,484 per quintal on loading, transportation and others which will raise our cost to Rs 1,700 a quintal which is not a viable rate for export," he added.

Traders said the wheat rate in global market has also nosedived from USD 290 per tonne two months back to USD 265 per tonne now.

"In the international market, already wheat rates are dipping then why anybody will take risk for export at higher rate to suffer any loss," another trader said.