August 7, 2006

  

India's MMTC plans 100,000 tonne wheat import

 

 

India's state-owned trading house MMTC Ltd plans to issue a tender to import at least 100,000 tonnes of wheat, a senior government official said Monday (Aug 19).

 

We may purchase MMTC's first cargo of Black Sea origin wheat import contracted at US$179/tonne on Jul 28, on a cost and freight basis, for delivery by end-September, the official told Dow Jones Newswires.

 

The July contract was for 50,000 tonnes of wheat.

 

MMTC's next tender to import not less than 100,000 tonnes of wheat is due shortly, the official said, adding that it is likely to be issued in the next few days.

 

The lowest bid in State Trading Corp's latest wheat import tender to buy 400,000 tonnes - issued on behalf of the government in July - was placed by Switzerland-based Agrico Trade and Finance at US$210-US$212/tonne, on a cost and freight basis, and for only 200,000 tonnes.

 

"If we compare the purchase price in MMTC's first wheat import tender with the lowest bid in the yet-to-be awarded STC tender, it is quite attractive," the official at the Ministry of Consumer Affairs, Food and Public Distribution said.

 

He said that if the quality is up to the desired level, the government may buy MMTC's cargo to help run its subsidised grains sale programme.

 

MMTC is currently importing wheat on its own account but like any other buyer, the government is open to purchase such cargoes, the official at the food ministry said.

 

While STC imports wheat on behalf of the government at zero customs duty, MMTC and private companies are allowed to import by paying a 5 percent duty.

 

STC has already bought 3.5 million tonnes of wheat on behalf of the government this year and is expected to place orders for another 400,000 tonnes this week, taking its total imports so far in 2006 to 3.9 million tonnes.

 

The official told Dow Jones Newswires last week that the government may buy 1.0 million tonnes of wheat in addition to the 3.9 million tonnes.