Mumbai: India received seven bids for less than a one million tonne wheat import tender at prices varying from $320 to $360 per tonne. Trading firms, including Cargill Inc. of the US, Concordia Agritech of the Netherlands and Glencore AG of Switzerland together offered to sell around 920,000 tonnes, reflecting tight supplies.

The bids are valid until July 10 and grain shipments must be made between August and November. However, the prices quoted are so high that traders said the government was unlikely to buy large quantities.

Toepfer International of Germany, which offered 256,000 tonnes at $320 per tonne — nearly 40 per cent above an average $230 paid for imports in 2006 — was the lowest bidder, traders said. The offer is also way above the price around $263 dismissed by the government as too high in a May this year.

The government buys wheat at around $210 from farmers in the local market. Obviously, the government cannot import wheat at prices above what it pays to local farmers.

Government agencies have so far bought around 11 million tonnes of new season wheat from domestic at Rs8,500 ($210) per tonne mainly to supply to the subsidized public distribution system.

Wheat prices on the Chicago Board of Trade rose to 11-year highs last month and traders expect little respite with world wheat stocks seen falling to a 30-year low due to erratic weather in the US and drought in Russia and Ukraine.

Agriculture minister Sharad Pawar has said India would need to import 5 million tonnes of the grain between August and December, but traders expect imports of around 2 million because of the healthy purchases from local farmers.

Traders, however, say India may chose to buy at least a small quantity of grain as scrapping two tenders in succession could mar its reputation as a buyer.