Singapore’s Agrocorp International has offered the highest price of $281.5 a tonne to buy 50,000 tonnes of wheat from State-owned PEC Ltd. The offer has been made to procure Food Corporation of India’s stocks from Krishnapatnam port in Andhra Pradesh.
Agrocorp’s offer is against the 70,000 tonnes that PEC had tendered for sale.
Cargill was the second highest bidder, offering $281.26 for 30,000 tonnes, while Emmsons International bid at $281.11.
PEC received six bids, with Vitol ($277.79), Starcom ($271.68) and Glencore ($269.10) being the other bidders.
The bids, received on Monday, were marginally lower than those received on December 12. But they are over eight per cent higher than the floor price of $260for exports set by the Government recently.
State entities including PEC, STC and MMTC have been receiving better than expected response in recent tenders.
The entities had offered 6.5 lakh tonnes of wheat for exports this month as pressure was building up on Government to create space for the new crop arrivals.
Wheat stocks in the Central pool stood at 31 million tonnes, thrice the target for the October-December quarter.
Expectations are that the country may see yet another bumper wheat harvest this season, based on the current sowing pattern wherein acreage under the cereal crop is higher by 40 lakh hectares (lh) at 253.75 lh for this time of the year.
Wheat planting will continue till mid-January.
The Government has decided to ship out about two million tonnes of wheat to reduce surplus stocks. The state entities had exported 4.2 mt in fiscal 2012-13 and the value of these shipments was $1.4 billion.
The average price fetched by Indian wheat was $311.38 last fiscal.
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