STC floats tender for 350,000 tonnes of wheat

State Trading Corporation called bids to import 350,000 tonnes of wheat as part of plans by the world's second-biggest user of the grain to replenish reserves.

Suppliers have been asked to submit offers by 2:30 pm local time on December 17, according to the tender document posted on the company's website on Monday. The wheat is for delivery by April 15.

The country has since July bought 1.79 million tonnes of wheat from traders including Glencore International and Cargill Inc to build its reserves, helping support this year's 87 per cent gain in prices on the Chicago Board of Trade.

State warehouses held 9 million tonnes on November 23, enough to meet demand for nine months, Food Corporation, the nation's biggest buyer of food grains, said on December 3.

Still, the government said in October it will buy 1 million tonnes through state trading firms including State Trading Corp to cope with emergencies.

State Trading is seeking 65,000 tonnes of wheat at Mundra and 45,000 tonnes at Kandla on the country's west coast; 40,000 tonnes each at Chennai, Vishakhapatnam, Tuticorin and 50,000 tonnes at Kakinada, all in southern India. It is seeking 35,000 tonnes each at Cochin and Mumbai ports. Bids must be valid till December 22.

PEC on December 7 bought 150,000 tonnes from JK International at an average price of $396 a tonne. MMTC last month bought 342,500 tonnes from Glencore and Cargill at an average $400.19 a tonne for delivery by February 10. The government bought 511,000 tonnes in July at prices ranging from $317 to $330 a tonne.

Wheat for March delivery gained 16 cents, or 1.74 per cent, to $9.3750 a bushel in after-hours trading on the Chicago Board of Trade at 10:03 am India time. The price reached a record $9.6175 a bushel on September 28.