New Delhi: Glencore International AG and Cargill Inc. won a contract to supply 342,500 tonnes of wheat to India at record prices as the world’s second biggest consumer of the grain replenishes its stockpiles.
The country’s biggest state trading company, MMTC Ltd, bought the wheat at an average $400.19 (Rs15,847) a tonne for delivery by 10 February, said a government official, who didn’t want to identified. The nation paid $389.45 a tonne for 795,000 tonnes in September.
Wheat has soared 67% in Chicago in the past year as buyers including Egypt, South Korea and Japan rush for supplies as global stockpiles are forecast to fall to the lowest in more than two decades. India’s demand may outstrip supply this year forcing the country to pay more to build stocks, Union agriculture minister Sharad Pawar had said in September.
Government-owned State Trading Corp. and PEC Ltd on 21 November called bids to buy a total 700,000 tonnes of wheat, part of a government plan to import one million tonnes (mt) through the three state trading firms, including MMTC. The country purchased 1.3mt in July and August.
Glencore and Cargill were among seven suppliers competing for MMTC’s contract. The government received bids for a total 1.06mt, three times the quantity sought, at between $397 and $487 a tonne. Glencore offered to supply 360,000 tonnes and Cargill 160,000 tonnes. Bloomberg