August 11, 2006

 

Swiss firm Agrico clinches Indian wheat deal

 

 

Swiss firm Agrico has won India's tender for a 330,000-tonne shipment of wheat, an official from India's State Trading Corp said Thursday (Aug 10).

 

Agrico's offer price of US$209.75-214.75 a tonne, cost and freight, was the lowest among 8 bidders. The STC, which shortlisted 8 bidders for its latest wheat tender for 400,000 tonnes, has decided not to buy from the other firms.

 

Agrico had secured a deal to supply 300,000 tonnes of wheat at prices ranging from US$198.20-US$199.20 in an earlier tender.

 

Traders said about 1.5 million tonnes had been offered, with prices ranging between US$210 and US$239 a tonne, cost and freight, at least US$12 to US$15 a tonne higher than in previous tenders.

 

The highest quantity offered came from Cargill Inc with 340,000 tonnes, while Australia's AWB Ltd. bid for 220,000 tonnes. Agrico had offered to supply 200,000 tonnes.

 

State-run PEC Ltd. was also likely to finalise a deal for the import of 50,000 tonnes wheat, on behalf of private parties.

 

Food Ministry officials said about 765,000 tonnes of wheat were expected to reach Indian ports by the end of this month. Private traders had also contracted for the import of 150,000 tonnes of wheat to be delivered.

 

India bought a total of 2.2-million-tonne wheat in June -- with five international bidders -- in the price range of US$196 to US$205 per tonne, cost and freight.

 

This latest tender is the fourth floated by the STC since February.

 

Officials have managed to buy just 9.2 million tonnes of wheat from domestic farmers this year against original estimates of 16.2 million tonnes.

 

According to the latest farm ministry estimates, India's wheat output was expected to be around 69.48 million tonnes against a target of 75.5 million tonnes.