May 17, 2006

 

India changes specifications for wheat import tender

 

 

India's State Trading Corp has made further changes in its tender to import 3 million tonnes of wheat, including the specifications for testing the quality of samples and fumigation of cargoes, a company official said Wednesday (May 17).

 

Several prospective bidders worldwide have been objecting to the rules on fumigation of cargoes and methods of sample testing.

 

This is the fourth set of modifications in the tender since it was issued May 8. In terms of the volume sought, it is the largest ever tender floated by India for importing wheat.

 

"Modifications have been made based on the suggestions received from prospective bidders last week, but it would be incorrect to say we are compromising on quality," said a company official.

 

The changes have been made barely a day before the tender closes Thursday (May 18).

 

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

 

The changes are aimed at wider participation in the contract by bidders from all over the world.

 

Under the original rules, exporters were required to fumigate their cargoes at both the port of origin and in transit.

 

However, according to the official, in-transit fumigation of cargoes using methyl bromide can now be done at the port of discharge in India.

 

Many countries do not allow the use of methyl bromide, as it is considered an environmentally unfriendly substance.

 

STC has also permitted flexibility in the amount of aluminium phosphide used for fumigating wheat cargoes at the port of origin, based on the rules in the country from where it is exported.

 

Now exporters have also been allowed to adopt an "appropriate" sampling method to detect pests and weeds. Earlier, it was stipulated that a 1 kilogramme sample of wheat be drawn for every 20 tonnes of grains loaded onto the vessel.

 

Traders had contended that this would result in thousands of samples being tested, a huge and costly exercise.

 

STC has also clarified that it will consider allowing deliveries in larger vessels after the contract is awarded, depending on the facilities available and distribution requirements of the government.

 

Earlier, a maximum width of 33 feet had been set for the delivery vessel, which traders argued would result in only smaller shipments being made and high transportation costs.

 

However, no changes have been made in specifications on pesticides and weeds. The wheat is to be free from 31 types of weeds listed in the tender. It also sets maximum limits for 49 insecticides and pesticides.

 

It has already been clarified that payment to exporters will only be made subject to quality clearance from Indian authorities at the port of entry.