August 18, 2006

 

MTPL's bid lowest in India's MMTC wheat tender

 

 

Government-run trading house MMTC's wholly owned Singapore-based subsidiary MTPL is the lowest bidder in its parent company's tender to import up to 120,000 tonnes of wheat, a company official said Friday (Aug 18).

 

MTPL has offered to supply 27,000 tonnes wheat at around US$216/tonne, cost and freight, the official told Dow Jones Newswires.

 

The official said Hamburg-based trading firm A.C. Toepfer has offered to supply around 125,000 tonnes of wheat at prices ranging between US$219/tonne and US$227/tonne.

 

Glencore has offered to supply around 105,000 tonnes wheat at US$223-US$247/tonne.

 

The prices quoted vary from port to port, said the official.

 

Traders Thursday said MMTC has received bids at prices mostly ranging between US$216-US$235/tonne, on a cost and freight basis.

 

MMTC issued a tender to import up to 120,000 tonnes of wheat for delivery in September and October on Aug 8.

 

The company, however, reserves the right to buy a lower or higher quantity depending on its requirements.

 

MMTC is seeking wheat at Vizag, Tuticorin, Mangalore and Kolkata ports in parcels of 25,000-50,000 tonnes. The bids were to be submitted by Thursday and must be valid for consideration until Aug 28.

 

MMTC has already purchased 50,000 tonnes of wheat of Black Sea origin at US$179/tonne, on a cost and freight basis, from MTPL for delivery by end-September through an earlier tender.

 

Another government-run company, State Trading Corp, or STC, finalized the import of 330,000 tonnes of Russian wheat, around US$210-$212/tonne, C&F, from Swiss-based trading house Agrico Trade and Finance SA for delivery in September and October.

 

State-run firm, PEC Ltd., purchased 40,000 tonnes wheat of Black Sea origin at around US$192/tonne, c&f, for delivery in August and September.

 

STC is importing wheat on behalf of the federal government to run subsidised sale programmes while PEC and MMTC are making purchases for private bread, flour and biscuit manufacturers.

 

India's federal government may import up to another 1.67 million tonnes of wheat over a period of several months through STC to build up local stocks in addition to the 3.83 million tonnes already imported since February, a senior government official said.