FCI defers wheat tender on poor response

The Food Corporation of India's (FCI) wheat tender was postponed because of poor response from participants owing to tender price much higher than the prices prevailing in the spot market.

According to C L Ram, general manager, Maharashtra region, the FCI received no tender for wheat today and the state-owned foodgrains procurement and supply agency postponed the entire tender.

The FCI's Maharashtra branch was expected to sell 1.20 lakh tonne of wheat today.

Market sources said participants were asked to quote higher than the base price of Rs 1,232 a quintal, which was about Rs 200 higher than the current wheat prices across the country.

"Why should one pay more when the same goods are available cheaper?" asked a local flour miller who had taken part in such tenders earlier.

Ram remained silent on the pricing part, saying it was a government policy and he could not comment on it.

The flour miller said the fundamentals for wheat had changed significantly, with the beginning of harvest. There was, hence, no logic to pay the FCI above the base price.

The FCI issued tenders for the sale of 4 lakh tonne of wheat across the country and, reportedly, got no response at all. No fresh date has been announced for retendering so far, Ram said.