Two firms qualify for wheat tender

Two companies out of the eight bidders have qualified on technical parameters in the new wheat import tender for 3 million tonne, said Akhilesh Prasad Singh, minister of state for food and public distribution.He said that the delayed Australian wheat shipment of about 400,000 tonne was likely to arrive in four to five weeks.

"Earlier, we were worried that we'll not get wheat. Now, two companies have successfully met technical specifications of the fresh tender, and will sell 1.7 million tonne wheat," the minister said.

Australia's monopoly wheat exporter AWB Ltd will supply 1.2 million tonne, while Geneva-based Agrico Trade S A will sell 500,000 tonne to the country, he said. State Trading Corporation had floated a tender to import 3 million tonne wheat, in addition to the 500,000-tonne tender that was awarded to AWB in March.

The latest tender had elicited a lukewarm response as only eight companies had submitted their bids for perhaps world's largest-ever wheat import contract. Of the eight bids, three were disqualified due to "major technical deviation" while the other three were "liable for rejection as having no bid bonds," the minister said.

"As the six firms got out of the race, only two have qualified on technical grounds," he said. Since the two companies that have met technical specifications will be able to supply only 1.7 million tonne in the 3-million-tonne tender, the government may float a fresh tender, the minister said.

He also said wheat shipments of about 400,000 tonne, which were delayed on quality concerns, are expected to reach India in four to five weeks as the government has asked AWB to get the issue sorted out by the Australian Quarantine and Inspection Service.

The India-bound shipments had got stranded on Australian ports over certification by Australian inspection body.

"It is our assessment that the delayed shipments will arrive now as discussions are on and they (AWB) have agreed to our conditions (quality specifications)," Singh said.

AWB spokesman Peter McBride said the company was still in talks with India's food ministry and State Trading Corporation to sort out the vexed issue.

The country is importing wheat to replenish its fast-depleting buffer stocks and curb prices, which have flared up on dwindling stocks.

In India, government buys food grains from farmers at a fixed price to maintain its buffer stocks, control prices, meet requirements of various welfare programmes, and sell grains to the poor at subsidised rates.

Procurement also provides farmers a safety net from distress sale.