Toepfer lowest bidder at $267

Archer Daniels Midland, the world's biggest grain processor, Cargill and Toepfer International are among seven bidders that have offered to sell wheat to India as the nation seeks to buy 1 million tonnes to boost reserves.

Toepfer offered 128,000 tonnes at $267.84 a tonne, the lowest, an official involved in the tender told reporters in New Delhi. Glencore International, Concordia Trading Corp and India's Adani Global were the other bidders. "It makes strategic sense for India to accept the offers as the government's wheat stock is low,'' Unupom Kausik, head of research at Anagram Commodities, said. The companies offered wheat priced from $267 to $302 a tonne on a cost-and- freight basis, the official said. That's more than the average $205.31 a tonne paid last year. The tender closed on Monday and the wheat is for delivery between June 1 and August 15.

The country might buy 5 million tonnes of wheat, Agriculture Minister Sharad Pawar said on May 12. The government is boosting stockpiles of foodgrains to meet demand and tame inflation that reached a two-year high in January. Wheat output may reach 74 million tonnes this year, short of demand forecast to rise to 75.5 million tonnes.