Glencore, Cargill bid for PEC wheat imports

Glencore International, Toepfer International and Cargill were among six companies that offered to sell wheat to India at a tender on Monday as South Asian nation builds stockpiles to meet rising demand.

State-owned PEC, seeking to import as much as 350,000 tonnes, received bids for 630,000 tonnes at between $395.88 a metric tonne and $483 a tonne, said a government official, who didn't want to be identified as talks with the suppliers are confidential.

India has since July imported 1.64 million tonnes at record prices to build its reserves. State warehouses held 9 million tonnes on November 23, enough to meet demand for nine months, Food Corp, the nation's biggest buyer of food grains, said on Monday.

Wheat prices in Chicago have risen 76 per cent in the past year as buyers including Egypt, South Korea and Japan rush for supplies.

The country's MMTC last month bought 342,500 tonnes from Glencore and Cargill at an average $400.19 a tonne for delivery by February 10. India paid $389.45 a tonne for 795,000 tonnes in September.

PEC 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 asking for 35,000 tonnes each at Cochin and Mumbai ports. Bids must be valid till December 8, the company said.

The grain must be delivered by March 10.