Agrocorp is the lowest bidder

Our Bureau

New Delhi, Aug 3

The State Trading Corporation of India's (STC) latest wheat import tender for four lakh tonnes (lt) has attracted eight bidders, who have quoted between $ 210 and $ 245 a tonne on a cost & freight (c&f) basis.

None of the eight bidders have offered to supply the entire four lt quantity for which STC had floated a tender on July 27 that closed on Thursday. According to company officials, the US-based Cargill Inc offered to supply the maximum of 3.4 lt at $ 233-245 a tonne.

Others who bid large quantities were Toepfer International of Germany (2.6 lt at $ 220-240 a tonne), Australia's AWB Ltd (2.2 lt at $ 216-230), the Switzerland-based Agrico Trade & Finance SA (two lt at $ 210-212) and Glencore International (1.75 lt at $ 222-228). Those offering smaller quantities were Singapore's Agrocorp International (90,000 tonnes at $ 212.95), France's Soufflet (70,000 tonnes at $ 223.9) and Concordia Agritrading, Singapore (43,000 tonnes at $217).

The tendered bids are valid till August 11, when the contracts are to be awarded after technical evaluation. The shipments are to be delivered during September-October at Visakhapatnam , Chennai, Cochin and Tuticorin ports in parcel sizes of 30,000 and 50,000 tonnes.

The bid prices at STC's latest tender are way above the contracted rates in its previous three tenders for an aggregate quantity of 35 lt. The first one, floated on February 10 for five lt was awarded to AWB at $178.75 a tonne. The second, on May 8 was given to AWB at $187 a tonne for five lt and to Agrico Trade at $198.20-199.20 a tonne for three lt.

In the third tender for 22 lt, floated on June 8, the contracts were awarded to Toepfer (7.2 lt), Glencore (5.5 lt), Cargill (4.05 lt), Archer Daniels Midlands (three lt) and Concordia (2.25 lt). The winning bids were at rates between $196 and $205 a tonne at various ports and averaging $198 a tonne c&f.

(This article was published in the Business Line print edition dated August 4, 2006)
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