May 15, 2006

 

India's STC changes norms in 3 million tonne wheat import tender

 

 

India's State Trading Corp (STC) has made important changes in its tender to import 3 million tonnes wheat, including the reduction in the performance bank guarantee to 5 percent, from the earlier stipulated 10 percent of the value of the contract, a senior company official said Friday (May 12).

 

"Certain changes (in tender) have already been done and some more suggestions have been received from prospective bidders which will be given due consideration in the next 3-4 days," a senior company official said after a pre-bid meeting with those interested to participate in the tender.

 

The tender closes May 18.

 

STC is importing wheat on behalf of India's federal government.

 

The changes are aimed at wider participation in the contract, more competitive bidding and timely delivery of good quality wheat into the country, the official said.

 

Earlier, the tender stipulated a sample of 100 grams of every one kilogramme of drawn sample of the cargo shall be subjected to X-ray examination to detect weevil infestation. In case any bunted grains are noticed the same shall be subjected to microscopic examination to characterise their species.

 

This condition has now been deleted.

 

The tender has now detailed the penalties for delay in deliveries beyond agreed schedules at 0.5 percent of the gross value of the delayed quantities for one to four additional days. The penalty has been set at 1.0 percent for five to six additional days and 1.50 percent for seven to eight additional days.

 

STC will consult federal health authorities, food ministry officials and experts from the Plant Protection and Quarantine Department before deciding to make any further changes in the tender, the company official said.

 

"We have made several suggestions to them (STC) including bringing down the limit of the bid-bond from the current minimum amount of US$3.0 million," said a trading house official who attended the meeting.

 

"It seems they are open to at least some of the changes suggested by traders," he added.

 

Some of the traders objected to the requirement stated in the tender for in-transit fumigation of the cargo by methyl bromide. They are also against drawing a sample of one kilogram of wheat for every 20 tonnes of grains loaded on to the vessel from the export lot of grain.

 

"This will result in thousands of samples being tested and instead only one composite sample should be drawn for quality inspection," a trader said.

 

Conditional payment for the cargo shipped and conditions relating to sanitary and phytosanitary norms including weeds were also discussed in the meeting, he said.