India firm offers wheat at $274.1T in Bangladesh tender
Tuesday, 11 October 2011
India's Emmsons International Limited made the lowest offer at $274.1 a tonne, including CIF liner out, in a Bangladesh tender that opened Monday to buy 50,000 tonnes of wheat, a food official said, reports Reuters.
Seven bidders took part in the tender, reissued by the state grains buyer late last month as part of efforts to replenish reserves.
The state grains buyer plans to import up to 900,000 tonnes of wheat in the year to June 2012.
Emmsons, which supplied around 400,000 tonnes of wheat to Bangladesh in the the previous fiscal year, has also secured two tenders for a total 100,000 tonnes of the grain at $309.11 and $329.11 a tonne in the current fiscal year.
Apart from tenders, Bangladesh is to import 100,000 tonnes of wheat from Ukraine at $320 a tonne, including CIF, in its first government-to-government wheat deal with Kiev.
Staple rice and wheat stocks at government inventories stand at more than 1.47 million tonnes, almost double a year ago, boosted by imports and record rice crops.
Bangladesh needs to import 3.0 million-3.5 million tonnes of wheat a year to meet demand while domestic production has stagnated at nearly 1 million tonnes.
Bangladeshi officials said it aimed to buy at least half its annual imports from neighbouring India, thanks to its competitive prices.
India last month freed up wheat exports for the first time since 2007, as unmanageable stock levels forced authorities to allow the export of two million tonnes each of wheat and rice.
Traders in Bangladesh said they expected the bulk of India's planned wheat exports to end up in Bangladesh as the country shifts away from Black Sea supplies.
On an average, 3,000-3,500 tonnes of wheat was coming from India each day, traders say.
The Indian move came against a backdrop of growing global supplies that are expected to squeeze prices.
US wheat futures for December delivery were up 0.9 per cent at $6.12-14 per bushel after closing down 8-12 cents Friday for its sixth straight week of declines.