STCI floats tender for wheat import

The State Trading Corporation of India (STCI) today invited offers for the import of wheat. The tender is scheduled to close at noon on February 20. The offers will be valid for acceptance by STCI till 11 pm on March 1.

As per the tender conditions, the arrival of imported wheat should be between March and mid-May, 2006, with at least 2.5-3 lakh tonne coming into the country in April.

The tender has been issued following a recent decision by the central government to import 5 lakh tonne of wheat (at southern ports) in a bid to curb rise in prices, following undue speculation as agriculture minister Sharad Pawar, put it earlier this month.

According to the tender, of the total 5 lakh tonne to be imported, 1.2 lakh tonne is scheduled to arrive at Cochin port, 1.1 lakh at Mangalore port, 1 lakh at Chennai and Tuticorin each and the remaining 70,000 tonne at Vishakaptnam.

Market players, however, feel the 5 lakh tonne of wheat to be imported in the marketing year starting April will not meet the country's requirement.

"India may require to import about 2-2.5 lakh tonne next year despite a crop of 74-75 million tonne, as per government estimates," said an industry official.

This is largely to do with low wheat stocks with the Food Corporation of India. As of February 1, FCI stocks stood at just about 47 lakh tonne.

The government estimates the next year's procurement to be about 16-17 million tonne, compared with 14.7 million tonne last year.

The imports are to be duty-free. It is also the first time since 1999 that the government is importing through STCI as the open market prices have been rising in the non-wheat producing states, especially Kerala and Karnataka.

At present, spot wheat price (ex-Delhi) is about Rs 800-815 per 100 kg. It had spiralled to a high of Rs 1,055 per 100 kg in the first fortnight of January this year.