May 30, 2006

 

India reviews wheat import plan

 

 

A high level committee of secretaries in India's federal government Monday reviewed the wheat availability situation in the country and various options available for import, a senior State Trading Corp (STC) of India official said Monday (May 29).

 

"The committee headed by the cabinet secretary has appraised the situation, including the limited offer of only around 800,000 tonnes being in full conformity with the technical specifications," the official said.

 

The only fully compliant bid is of Switzerland's Agrico Trade and Finance SA which is offering 300,000 tonnes of Russian origin wheat at around US$198 a tonne, cost and freight, he said.

 

Australia's AWB made a conditional offer of 1.2 million tonnes wheat but says only around 500,000 tonnes wheat may be supplied fully compliant to the tender specifications. AWB has offered wheat at around US$210 a tonne, cost and freight and US$175/tonne, free-on-board.

 

"We may not be able to relax the tender specifications for a single bidder while Agrico Trade and Finance is unlikely to offer additional quantities," said the official.

 

The offers are valid until Tuesday.

 

"There is still time till tomorrow, we can even ask the bidders to extend the validity of their offers even as efforts are made to get the best possible price and highest possible quantity," said the official.

 

After the technical clearance from the food ministry, price negotiations are to be done by the STC.

 

STC is importing wheat on behalf of the federal government and earlier this month floated a tender to buy 3.0 million tonnes.