New Delhi: Cargill Inc., the largest US agricultural company, and Glencore International AG are among seven companies that have offered to sell wheat to India as the nation seeks to buy one million tonne (mt) to boost reserves.
Louis Dreyfus Corp. and Concordia Trading Corp. also bid, said a government official involved in the tender in New Delhi. The suppliers offered a combined 920,000 tonnes at $317 (Rs12,680) a tonne and $370 a tonne, he said. That’s more than the lowest price of $265 quoted in a tender that was cancelled on 30 May.
India is buying wheat for a second year to boost stockpiles as demand exceeds output, likely bolstering global prices that reached a record last week. The country scrapped the tender for 1mt as it judged prices offered to be high. Wheat has since risen 12% in Chicago, likely forcing the government to pay more for the purchase. Wheat futures were little changed on the Chicago Board of Trade, with the September contract down 0.25 cent at $5.83 a bushel in after-hours electronic trading. Futures climbed to a record $6.50 on 29 June and are up 52% in the past year.
India had 13.3mt of wheat in state warehouses as of 31 May, less than the 17.1mt the government needs to store by 1 July. Imports may rise to 5mt this year to cope with emergencies, agriculture minister Sharad Pawar had said on 12 May. The country had called bids on 26 June for the grain to be delivered between August and November. BLOOMBERG