MMTC Ltd to float tender for 50,000 tonnes wheat import

Barely a week after the trashing of a 10-lakh tonne (lt) wheat import tender by the State Trading Corporation of India (STC), it is the turn of the other parastatal, MMTC Ltd, to float a tender for 50,000 tonnes. Unlike STC, which was purchasing on behalf of the Food Corporation of India (STC), MMTC's tender is a purely commercial transaction for supply of wheat to domestic roller flour mills. The tender, which opens on June 19 with bids valid till June 29, gives MMTC the option to buy an additional 50,000 tonnes. Meanwhile, it is learnt that the US commodity giant, Cargill, has booked at least one vessel of 35,000-45,000 tonnes of Black Sea origin wheat for delivery in Chennai and Tuticorin ports in September. STC tender was floated very late in end-April, when there was very little wheat in the world market. Cargill's contract was around February and was, in fact, done in Indian rupees. Since the dollar was then Rs 44.50-45 and is now Rs 40.50, the landed price for the contract would currently be about $ 259 per tonne.During 2006-07, the country imported roughly 63 lt of wheat, including 55 lt on Government account and the rest by the private trade. In the current fiscal, the Government is still to import any grain, while the private trade has done about 30,000-40,000 tonnes mainly from Pakistan.