The Hindu : Business : 8 global cos. bid for wheat order

Online edition of India's National Newspaper
Wednesday, Jun 21, 2006

Business

Business

8 global cos. bid for wheat order

Special Correspondent

Quality norms relaxed to enable bids

NEW DELHI: Two American, three European and three-Singapore headquartered trading companies have bid for India's order for 22 lakh tonnes of imported wheat. The tenders were opened on Tuesday by the State Trading Corporation here.

The global companies that are reported to have responded to the tender include Cargill, ADM (both U.S.-based), Glencore, Bunge, Toefer (from European Union) and Singapore-based Noble Grain, Touton, Concordia. Altogether the companies have bid for a quantity of 30 lakh tonnes against India's requirement of 22 lakh tonnes.

Having failed to receive adequate response in the first instance, India relaxed its quality norms thrice to enable U.S. and other European companies to bid. Significantly, the Australian Wheat Board did not bid this time.

India was in the international market to import a total of 35 lakh tonnes of wheat to make up the shortfall in its buffer norms for the public distribution system. The Australian Wheat Board was the sole bidder for the first order of five lakh tonnes of wheat for the Southern States. So far it is said to have supplied about 91,000 tonnes.

For the 30 lakh tonnes, the Australian Wheat Board and the Agrico and Finance company bid for eight lakh tonnes. India then further relaxed its quality specifications to enable other global bidders to participate, sources said.

A committee of officials from the food and health ministries and the STC would evaluate the bids technically before the final price bids. India had last imported wheat in 1998. Against a demand of two million tonnes, about 1.2 million tonnes were contracted with the Australian Wheat Board. But the final quantities that came were less than one million tonnes.

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