PEC floats tender for import of 50,000 tonne maize

NEW DELHI: State-owned trading firm PEC has invited bids for import of 50,000 tonne maize to boost domestic supplies in view of fall in production.

The government had in January this year asked PEC to import 5,00,000 tonnes of maize at zero duty to meet starch and poultry industry's demand.

At present, maize attracts 50 per cent import duty. The zero duty concession on the overseas purchase of maize has been given under the tariff rate quota (TRQ) following representation from poultry, starch and animal feed industry.

The country had last imported maize in 1991.

According to the tender document, PEC is free to select origin depending upon its judgment of prices received in the tender.

"The bids are invited from foreign suppliers/sellers of yellow maize (Non-GMO), PEC said in the tender document.

The successful bidder is required to provide bank guarantee for 3 per cent value of the contract within five working days from the date of letter of award.

As per Agriculture Ministry's third advance estimate, the maize production in the country is estimated to have declined to 21.02 million tonnes in 2015-16 from 23.67 million tonnes in the previous year.

India has been a traditionally a major corn exporter to southeast Asia but the drought and rising domestic demand has cut export supplies.