The price at which State Trading Corporation (STC), the canalising agency for wheat import, has been contracting the foodgrain from global trading agencies cannot be taken as the benchmark for such import meant for private trade. | |
| "STC is importing wheat duty free. It is buying on behalf of the government to augment buffer stocks. So, the price at which STC is importing cannot be the benchmark price for such imports for user industries," industry sources said. |
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| Import for commercial sale should be viable, which means landed cost of imported wheat after adding 5 per cent duty should be less than domestic price prevailing in the area, where the consignment would finally be sold, they added. |
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| STC, in its third round of global wheat import tender in June, had contracted 22 lakh tonne import at $190 to $205 a tonne while MMTC, in July, contracted 50,000 tonne at $179 a tonne from its Singapore-based subsidiary, they pointed out. |
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| Meanwhile, MMTC's latest tender floated last week for over 1 lakh tonne wheat imports, meant for user industries, like biscuit, bread manufacturers and flour millers, received encouraging response from global suppliers. |
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| "Initial response for the second round is encouraging. A lot of suppliers are taking interest as they feel MMTC will be importing wheat on a regular basis in coming months," they said. |
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