August 6, 2012

India's PEC gets 15 bids for wheat exports

For its tender of 90,000 tonnes of wheat exports, India's state-owned trading firm PEC has received 15 bids in a price range of US$270-297 per tonne, while the highest bid was from Singapore-based Starcom.

The price quoted in the bids is much higher than the base price of US$228 per tonne fixed by the government.

The Cabinet Committee on Economic Affairs (CCEA) had last month allowed two million tonnes of wheat export from its godowns to ease storage problem.

Wheat exports through private trade were allowed in September 2011 and about 1.8 million tonnes of the grain has been shipped since then.

PEC is offering wheat from Kandla port and the shipments would take place during August-September period. The grain is of 2011-12 and 2012-13 crop years.

The CCEA had directed forming a committee, headed by Commerce Secretary, for deciding on quantity, timing of tenders and the price at which wheat exports would be undertaken.

India produced a record 93.90 million tonnes of wheat in 2011-12 crop year (July-June).