November 8, 2006

India's MMTC wheat tender finds no takers
 

India's government-owned trading house MMTC Ltd, has not received any offers for its tender to import between 25,000-30,000 tonnes of wheat, at US$220 a tonne, a federal commerce ministry official said Tuesday (Nov 9).

International prices have soared in the past few months on strong demand from India, drought-hit supplies from Australia and export licensing in Ukraine.

Currently, international prices for wheat is between US$250 and US$280 a tonne, cost and freight Indian ports, depending on grades and origins.

Trading companies would not sell the wheat even on a free-on-board basis on the price at which MMTC is offering, said an official of an international trading house based in Mumbai.

MMTC was seeking wheat at Chennai and Tuticorin ports on behalf of mills along the coast in southern provinces and issued the tender on Oct 26.

Mills in south India have already contracted imports of close to 1.0 million tonnes since early-July through several trading houses.

An earlier cargo imported by MMTC through a tender, carrying around 50,000 tonnes of Russian wheat, was resold to the seller last month, after it failed quality tests at Chennai port.

In a subsequent tender to import over 120,000 tonnes of wheat, MMTC decided not to make any purchases as it considered bidders' prices much higher than the local rates.