The Hindu Business Line : AWB wins wheat tender

AWB Ltd, Australia's monopoly wheat marketing body, has bagged the tender floated by the State Trading Corporation (STC) on behalf of the Centre to import five lakh tonnes (lt) of wheat duty-free.

From all available indications, AWB was the lowest bidder with the offer valid till Wednesday. AWB had offered wheat at $179 a tonne c&f southern ports but it was valid until February 23 only. The Australian body had offered to supply wheat at $185 a tonne after that and this was valid till Wednesday. Also, it had come forward to supply the entire five 5 lakh tonnes.

The closest bidder was trading firm Glencore, which offered 3 lt wheat of European Union from Black Sea port at $181.85 a tonne but the offer expired on February 23.

ETA of Dubai offered 2 lt of Canadian origin wheat at $185.25 on the west coast and $193 for the east coast, while ADM offered either US or Canada origin wheat at $215 but only 80,000 tonnes. Agrico was ready to give 50,000 tonnes of Canadian wheat at $184.50. Yet another bidder was ready to supply two lakh tonnes of Canadian wheat at 194.75 a tonne and Acti was ready to supply EU wheat at $191.25 on the west coast and 196.75 on the east coast.

The wheat tender was finalised by a high-level committee of the Union Food Ministry on Wednesday. Ever since the Union Government decided on February 2 to go in for imports to rein in rising wheat prices, Australia was seen as enjoying an advantage since the shipments were to southern States. The Centre also entrusted the responsibility of importing wheat with the State Trading Corporation, which floated a tender on February 10. The tender, seeking crop of the current season (2005-06) from any origin for import in "loose bulk" form, closed on February 20.

Though the US is reported to have canvassed for relaxation of the quality parameters for the import, only Soufflet offered US-origin wheat of 25,000 tonnes that too at a high price. The Union and Food and Agriculture Minister, Mr Sharad Pawar, however, stood firm on the parameters, saying the tender norms were fixed after consultations with the Department of Plant Quarantine. The shipments should start arriving from the middle of next month to May into Chennai (one lt), Tuticorin (one lt), Visakhapatnam (70,000 tonnes), Mangalore (1.1 lt) and Kochi (1.2 lt).

The Union Government decided to import wheat after a gap of six years as prices began to rise on shortage. While roller flourmills and other users complained of low stocks, the stocks in the Central pool declined to 38 lt last week.

Domestic prices for wheat (dara) today stood at Rs 940-942, against Rs 957 on February 2 when the Centre decided to resort to imports and Rs 970 when STC floated the tender. This is in view of lower than estimated crop of 73.06 million tonnes (mt) against initial projections of 75 mt.

The finalisation of the tender comes at a time when the US President, Mr George Bush, is on a visit to the country and the Australian Prime Minister, Mr John Howard, is scheduled to visit New Delhi next week.