Five companies bag STC wheat import tender

The State Trading Corporation (STC) has finalised the 2.2 million tonne wheat import tender. Five companies have been awarded contracts to export wheat to India. Of these, Toefer of Hamburg (Germany) has got the contract to export the biggest amount of 7.2 lakh tonne.

The other companies that have been awarded contracts are Glencore (5.5 lakh tonne), Cargill (4.05 lakh tonne), ADM (Archer Daniels Midland) got the contract to export 3 lakh tonne and Concordia (2.25 lakh tonne).

The rates are in the range of $196 to $205 per tonne, cost and freight. As per the tender directives, the shipments would arrive between September '06 and January '07.

The tender was floated on the June 12. Though eight companies had submitted their bids, the bids of three companies (Bunge, Noble Grain and Touton) were rejected as they did not meet the tender specifications.

The relaxed quality norms in the latest tender ensured that the companies meet the total tender requirement of 2.2 million tonne.

The last tender for import of 3 million tonne saw a lukewarm response as bids amounted to only 2.68 million tonne. Of this, the purchase of only 8 million tonne could be finalised owing to strict quality norms. The rates offered for this was in the range of $175 to $210 per tonne, cost and freight.

India is importing wheat after a gap of six years owing to a shortfall in production and to maintain the buffer stock norms. According to government estimates wheat procurement this year has fallen sharply to 9.5 million tonnes, from last year's 14.7 million tonnes.