Agri Business

Bangladesh rejects sole bid for its wheat import tender

Subramani Ra Mancombu | | Updated on: May 25, 2022
Bangladesh will open bids for the next tender for the import of another 50,000 tonnes of wheat on May 29

Bangladesh will open bids for the next tender for the import of another 50,000 tonnes of wheat on May 29 | Photo Credit: -

Singapore’s Agrocorp Intl offers the grain for $548.38/tonne

Bangladesh has rejected a sole bid by Agrocorp International Pte Ltd for its tender to purchase 50,000 tonnes of wheat. 

According to Delhi-based exporter Rajesh Paharia Jain, Agrocorp offered wheat of any origin at $548.38 a tonne. The bids were opened for scrutiny on Tuesday.

This is far higher than the lowest bid accepted for the April 11 tender by Bangladesh. India’s Bagadia Brothers won the tender, offering wheat at $399.69 a tonne. 

“Bangladesh was not expected to buy in this tender. Even the next, it may not buy. It wants to use the tenders as a yardstick to check prices and then use it as a reference to approach India for a government-to-government supply, “Jain said.

Bids for the next tender for the import of another 50,000 tonnes of wheat will be opened by Bangladesh on May 29. 

India banned wheat exports on May 13 to address issues such as low-than-expected production, rising inflation, and low procurement by the Food Corporation of India in view of open market prices ruling higher than the minimum support price (MSP) of ₹2,015 a quintal following demand for exports. 

This has led to a surge in global wheat prices, though they have dropped eight per cent in the past week as supply concerns have eased. On Tuesday, benchmark wheat futures on the Chicago Board of Trade closed lower at $11.32 a bushel ($415.93 a tonne).

Jordon too rejects bid

Similarly, Jordan also cancelled its tender to buy wheat as its Ministry of Industry, Trade and Supply received only a solitary bid from the US-based CHS cooperative owned by farmers and local cooperatives.

The single bid for the Bangladesh tender was higher, mainly on account of India’s ban on wheat exports. In the April 11 tender, the offer price was lower than the previous tender bid of $406.83 earlier that month. 

In another bid finalised in the third week of March, Swiss Singapore Overseas made the lowest bid at $409.97 a tonne, covering cost, insurance, and freight plus unloading costs.

Wheat for all these tenders was expected to be supplied from India. The bids include cost, insurance, freight, and unloading charges. Earlier this year, Bangladesh decided to import one million tonnes of wheat through tenders after supplies from Russia were affected.

Supplies from Russia and Ukraine, which make up nearly 30 per cent of the global market supply, have been affected following the conflict between both the erstwhile Soviet members. 

Published on May 25, 2022
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