STC may float 2 mt wheat import tender by month-end

The State Trading Corporation is likely to float a tender to import up to 2 million tonnes wheat this month, a senior food ministry official said today.

"The new tender may be floated on Monday or by the month-end," he said. The final decision on the date of the tender is likely to be taken on Friday. More tenders would be floated later in the year to import a total of 4-5 million tonnes wheat, the official said. Imports are being undertaken to build up buffer, he reiterated.

India had started the current financial year with a buffer of 4.7 million tonnes compared with 2.1 million tonnes a year ago. Agriculture Minister Sharad Pawar had last week said India would float fresh tenders for wheat import after procurement operations for the season were over.

Last month, STC had floated a 1-million tonne wheat import tender, which was scrapped because of high priced bids due to stringent quality norms. Consequently, after rounds of deliberations with overseas sellers, India is now mulling easing quality norms to allow broader participation.

Last year, India had become one of the world's largest wheat importers. It was compelled to import on low output of the foodgrain and soaring domestic prices.

This year, wheat output is seen higher at 73.7 million tonnes compared with 69.5 million tonnes last year. The official said government's procurement operations in wheat producing majors Punjab and Haryana will end on Friday, while in the rest of the country it will conclude by the month-end, the official said.

The official said there was no plan to extend procurement in Punjab and Haryana beyond Friday. "Arrivals have started waning, and by end of this month they (arrivals) would almost dry up," he said.

"We have so far procured 10.8 million tonnes ... Total procurement is seen at around 11.0-11.5 million tonnes," the official said.

The official said the government requires about 12-14 million tonnes wheat to run its public distribution schemes. "So we will be short of the target," he said. The government is targeting to procure 15.1 million tonnes wheat in the current rabi marketing season.