New Delhi: The State Trading Corporation of India (STC) on Aug 23, floated a tender to import an unspecified quantity of wheat on Government account to be delivered between October and December. The move comes at a time when global prices have soared to all-time-highs, raising the possibility of the Centre shelling out well over $400 a tonne in the event of imports being contracted at current rates. The parcel size has been set at 25,000-75,000 tonnes for Mundra and at 25,000-50,000 tonnes for the other seven designated ports of Kakinada, Kandla, Mumbai, Chennai, Visakhapatnam, Tuticorin and Kochi. The tender closes on August 29, with the offers being valid till September 9.
The timing of the latest tender is significant, considering that the benchmark December wheat futures contract at the Chicago Board of Trade (CBOT) is currently quoting at a record $7.43 a bushel or $273 a tonne (one bushel equals 27.216 kg). To put these prices in perspective, it may be noted that when STC's last import tender was issued on June 26, CBOT rates were ruling at $6 a bushel ($220 a tonne), while Russian wheat was being offered for $235 a tonne (f.o.b.).
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