MMTC, PEC & MMTC float tenders for 2.4 lakh tonne wheat export

Entire 2 mn tonne would not be sold at one go as global prices are on the rise: Thomas

Public sector trading firms STC, PEC and MMTC today floated global tenders for export of 2.4 lakh tonnes of wheat from government godowns which will ease storage crunch during the monsoon season.

The trading firms have floated separate tenders following the recent approval by the Cabinet Committee on Economic Affairs (CCEA) to allow two million tonnes of wheat export from the godowns of Food Corporation of India (FCI).

Wheat exports through private trade were allowed in September 2011 and about 1.8 million tonnes of the grain has been shipped since then.
Of 2.4 lakh tonnes of wheat tenders, STC has invited bids for export of 1,00,000 tonnes, PEC for 90,000 tonnes and MMTC for 50,000 tonnes. Bids will close on August 13 and shipments would be in August-September.

According to tender documents, STC is offering wheat from FCI stocks at Mundra port, while MMTC from Pipavav port and PEC from Kandla port. The grain is of 2011-12 and 2012-13 crop years.

The CCEA had fixed a base price of $228 per tonne for wheat exports. It had directed to form a committee, headed by Commerce Secretary, for deciding on quantity, timing of tenders and the price at which exports would be undertaken.

Food Minister K V Thomas had said that the government would not sell the entire 2 million tonnes of wheat at one stretch in view of rising global prices and trading firms would float multiple tenders.

The government is facing a storage crisis because of record 82 million tonnes of foodgrains in its stocks against storing capacity of 64 million tonnes.

India produced a record 90.23 million tonnes of wheat in 2011-12 crop year (July-June), which led to an all-time high procurement of about 38 million tonnes this year.