Government cancels wheat import tender, extends procurement period

29 May 2007

Mumbai: The government has decided to cancel the import tender floated for 1 million tonnes of wheat, citing high prices quoted by global suppliers. It also extended wheat procurement period in Punjab and Haryana.

"We have decided to cancel the tender as the price of $263 per tonne quoted by the bidder is high considering that the international prices are expected to soften following hopes of high global output," a senior food ministry official said.

The State Trading Corporation, which floated the tender, had received seven bids from international trading firms at between $265.50 and $296 per tonne - about a fifth more than what the country paid last year.

STC negotiated with bidders Glencore and Toepfer to bring down the lowest price offered to $263 per tonne for 300,000 tonnes of wheat, traders and officials said.

The proposal, however, has been shot down by the food ministry.

The imports were meant to bridge the gap in local procurement.