MMTC tender may get bids around $450 a tonne

India is likely to get bids ranging between $440 and $450 a tonne in its latest 350,000 tonnes wheat import tender, industry officials said today.

The country's latest import tender, floated through state-run MMTC, is seeking delivery of wheat by February 10 at eight ports.

An official with an international trading company, who did not wish to be identified, said though global wheat prices have stabilised since the past few weeks, high freight costs will keep the landed cost of imported wheat in India above $440 a tonne.

Global wheat prices, which had shot up to a record high of over $330 a tonne in September, have since eased to about $286 a tonne. Freight costs, however, have risen to record highs.

The Baltic Dry Index, a benchmark of commodity shipping costs, rose to a record high of 11,033 on October 9 on a shortage of carriers, congestion at ports as well as higher demand for large ships.

The index has risen by over 140 per cent since January 1.

Another industry official said currently wheat could be brought to India from EU, Canada and the Black Sea region.

Freight would cost about $75 a tonne from Black Sea, a little higher from the EU and about $120 a tonne from Canada.

At such high levels, it would be difficult to get any wheat shipments to India below $450 a tonne," the official said.

In its last wheat import tender in September, the government had struck deals at a weighted average price of $389.45 a tonne.