June 29, 2006

India wraps up wheat import deal

India has wrapped up a 2.2 million tonne wheat import deal on Wednesday (Jun 28) with five international bidders, helping to take some pressure off its currently tight supply situation.

Glencore, ADM, Cargill, Concordia and Toepfer were announced as the successful bidders. Bids from three firms -- Bunge, Noble Grains and Teuton -- were rejected.

The official said Concordia had won a contract for 225,000 tonnes, ADM for 300,000 tonnes, Cargill for 405,000 tonnes, Glencore for 550,000 tonnes and Toepfer for 720,000 tonnes.

The prices range from US$196 to US$205 a tonne, cost and freight.

India began importing wheat for the first time in six years as prices shot up in southern, non-wheat growing states.

New Delhi relaxed several criteria after an earlier tender drew a disappointing response. The new tender received offers from eight international firms for about 3 million tonnes for delivery between September 2006 and January 2007, an official said.

Agriculture Minister Sharad Pawar said on Tuesday that the government would not float any more global tenders as it had allowed private firms to import wheat to rein in prices.

The duty level for such imports was to be announced within a week.

Traders said allowing private firms to import wheat would put pressure on farmers who had hoarded stocks in anticipation of a price rise.