May 15, 2006

 

India selects ports for wheat delivery

 

 

India's government has designated five ports for a total delivery of 3 million tonnes of imported wheat through State Trading Corp. of India, a senior company official said Monday.

 

This is India's single largest wheat import tender in volume, and could involve up to 100 shipments being delivered over a five-month period.

 

STC is importing wheat on behalf of the federal government and floated a tender last week for the imports that closes Thursday (May 18).

 

The deliveries are to be completed by November 2006, he said.

 

"Even though we have not specified the ports of entry in the tender...the government is mainly seeking deliveries at Chennai, Kolkata, Kandla, Nhava Sheva and Vishakhapatanam," the official said.

 

"Eventually we would like wheat deliveries to be spread over ports close to the main distribution centers to cut inland transportation costs," the official added.

 

He said availability of berths at ports and behavior of monsoon rains will also be vital factors in deciding the place of delivery, he said.

 

The shipments are considered a large logistical exercise given southwest monsoon rains between June and September could further delay shipments.

 

The tender stipulates that in case of contracts made on cost and freight basis, the width of the vessel should not exceed 33 feet for berthing at Indian ports.

 

As a result, large shipments carrying 45,000 tons and above may not be made, said traders.

 

The STC official said the company has an "open-mind" on the entire issue and is considering the suggestions made by traders to make changes in the tender.

 

However, in many Indian ports it will be difficult to berth and unload vessels with a larger width, and deliveries could not be concentrated on only one or two ports.