May 11, 2006

Traders seek changes in Indian wheat tender

India has relaxed quality norms for import of 3 million tonnes of wheat in its latest tender, but many traders are now jointly seeking changes in financial terms and conditions, which they say are difficult to meet.

The minimum bid-bond of US$3 million for all bidders and on awarding of contract, a performance guarantee of 10 percent for one year, are prohibitive.

The maximum draft size of the vessel stipulated at 33-feet is considered too low for large shipments and economies of scale, which could lead to astronomical freight costs, traders say.