PSUs may invite multiple global tenders for wheat export

NEW DELHI: State-run trading firms such as STC, MMTC and PEC are likely to float multiple global tenders for export of 2 million tonnes of wheat permitted by the government earlier this week.

Each export tender will be invited for quantities up to 1.5 lakh tonnes to ensure better realisation, sources said.

Earlier this week, the Cabinet Committee on Economic Affairs (CCEA) had permitted export of two million tonnes of wheat to clear surplus stock for accommodating the new crop.

The CCEA had asked STC, MMTC and PEC to undertake wheat export on behalf of the government and had fixed the floor price of USD 228 a tonne.

"Trading firms have been directed to float 10-15 tenders for export of small quantity of wheat keeping in view several issues like vessel constraints at ports," a source said.

The recent tender invited by STC was for discovering export price of wheat. The actual shipments will be allowed based on fresh bids. However, the floor price of each tender would be decided by the committee-headed by the Commerce Secretary, the source added.

Recently, Food Minister K V Thomas had said the government would not export the entire 2 million tonnes at a stretch and the committee would examine the global price situation and take decision at an appropriate time.

"We are not in a hurry to export. We are looking at the international situation because the prices in the global market are firming up," he had said.

Wheat prices on the Chicago Board of Trade (CBOT) have increased by about 20 per cent in last two weeks.

The government has purchased wheat at an economic cost of Rs 18,220 a tonne and the export of 2 million tonnes of the grain would cost the exchequer over Rs 1,500 crore, sources said.

At present, the government is grappling with the problem of plenty as its godowns are overflowing with a record 82 million tonnes of foodgrains against the storage capacity of 64 million tonnes. The stocks have risen due to a record production and procurement in the last few years.