Govt scraps wheat tender; not to import more this year
Swiss firm Glencore, US company Cargill and Germany's Toepfer had submitted bids in a range of $459.9 to a record of $579.6 per ton. The selling mantra
By PTI |
NEW DELHI: Government on Monday scrapped a tender to import wheat citing high prices and said it will not undertake more purchases of the grain from overseas market this season as the current buffer stock is comfortable.
"We have scrapped the tender. Prices were high," Commerce Secretary G K Pillai said.
The State Trading Corporation, which is importing wheat on behalf of the government, on December 10 floated a tender to import wheat. The corporation received three bids from global suppliers in the range of $459.9-579.6 per ton for supply of about 3.15 lakh tons.
Swiss firm Glencore, US trading company Cargill and Germany's Toepfer submitted bids in a range of $459.9 to a record of $579.6 per ton for supply of about 3.15 lakh tons, trade sources had said.
When asked whether government plans to float more tenders to import five lakh quantity left out of the planned 10 lakh tons, Pillai said: "We will not import more wheat this year. We have reasonable amount of buffer stock of wheat now."
The stock position of wheat with the Food Corporation of India as on today stands at 76.64 lakh tons, while the buffer norms stipulate a stock of 82 lakh tons as on January 1, 2008.
The Commerce Ministry had earlier this month allowed PEC Ltd to import 1.5 lakh tons of wheat at $396.9 per ton. On November 23, MMTC Ltd decided to buy 3.425 lakh tons at an average price of $400.19 a ton.
Australia-based J K International would supply wheat to PEC, while Cargill and Glencore would supply to MMTC.
The government has decided to import 23 lakh tons of the grain during 2007-08. Before this STC tender, orders had been placed for import of 17.985 lakh tons by STC, MMTC and PEC.
"We have scrapped the tender. Prices were high," Commerce Secretary G K Pillai said.
The State Trading Corporation, which is importing wheat on behalf of the government, on December 10 floated a tender to import wheat. The corporation received three bids from global suppliers in the range of $459.9-579.6 per ton for supply of about 3.15 lakh tons.
Swiss firm Glencore, US trading company Cargill and Germany's Toepfer submitted bids in a range of $459.9 to a record of $579.6 per ton for supply of about 3.15 lakh tons, trade sources had said.
When asked whether government plans to float more tenders to import five lakh quantity left out of the planned 10 lakh tons, Pillai said: "We will not import more wheat this year. We have reasonable amount of buffer stock of wheat now."
The stock position of wheat with the Food Corporation of India as on today stands at 76.64 lakh tons, while the buffer norms stipulate a stock of 82 lakh tons as on January 1, 2008.
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The Commerce Ministry had earlier this month allowed PEC Ltd to import 1.5 lakh tons of wheat at $396.9 per ton. On November 23, MMTC Ltd decided to buy 3.425 lakh tons at an average price of $400.19 a ton.
Australia-based J K International would supply wheat to PEC, while Cargill and Glencore would supply to MMTC.
The government has decided to import 23 lakh tons of the grain during 2007-08. Before this STC tender, orders had been placed for import of 17.985 lakh tons by STC, MMTC and PEC.
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