MMTC floats tender for import of wheat

MMTC, the country's biggest state-run trader, called bids for imports of 350,000 tonnes of wheat to help the government boost stockpiles as demand outpaces supply.

The New Delhi-based company is seeking the grain at eight ports for delivery by February 10, it said on its website. Suppliers will have until November 19 to submit bids.

The government's plans to resume wheat purchases after a two-month gap may support global wheat prices, which have risen 59 per cent in the past six months on the Chicago Board of Trade. The country has since July bought 1.3 million tonnes from suppliers including Glencore International AG and Toepfer International.

Wheat demand in the country, the world's third-biggest buyer last year, may total 71.32 million tonnes, exceeding availability of 65.52 million tonnes, agriculture minister Sharad Pawar said in September.

The country will import 1 million tonnes through three state-owned firms including MMTC, a government official said October 30.

State-owned warehouses held 10.9 million tonnes of wheat on September 7, according to Food Corporation, the nation's biggest buyer of food grains.

The government needs 1 million tonnes every month to distribute to the poor.

MMTC is seeking 65,000 tonnes of wheat at Mundra and 45,000 tonnes at Kandla on the country's west coast; 40,000 tonnes each at Chennai, Vishakhapatnam, Tuticorin and 50,000 tonnes at Kakinada, all in southern India. It is seeking 35,000 tonnes each at Cochin and Mumbai ports. Bids would be valid till November 24, MMTC said.