An empowered committee has given an approval for export of 70,000 tonnes of wheat from the government stock. The state-run trading firms STC and PEC has invited the bids for the same. Recently in an effort to clear the surplus stocks, the Cabinet Committee on Economic Affairs (CCEA) had given its approval for export of 2 million tonnes of wheat from the Food Corporation of India (FCI).
Last month on behalf of government, STC had floated global tenders for export of 100,000 tonnes, PEC for 90,000 tonnes and MMTC for 50,000 tonnes of wheat. STC grabbed highest bid from Germany's Toepfer International which quoted $302 a tonne for 35,000 tonnes while Singapore-based Starcomm had bid maximum at $296.65 per tonne for 35,000 tonnes for PEC. The Committee cleared export of 35,000 tonnes each for STC and PEC merely after looking into the price quotation of each agency.
On the other hand, compared with STC and PEC, MMTC bids are likely to be scrapped as it has received the bid at the lower price quotation in the range of $265-280 a tonne. Moreover, STC and PEC is contemplating to approach the highest bidders to ship more quantity at this price. In case Toepfer International and Starcomm disagree to undertake more shipments then STC and PEC would negotiate with second highest bidder on prices. The bidders should undertake the shipments in August and September period.
Meanwhile, acting on directions set by CCEA a committee has been formed which is been headed by Commerce Secretary and has been authorized to decide on quantity, timing of tenders and the price at which exports would be undertaken. The CCEA had also fixed a base price of $228 per tonne for wheat exports. Also a second global tender has been floated for export of 130,000 tonnes wheat from government godowns by PEC, STC and MMTC in order to clear surplus stock.
In 2011-12 crop year (July-June) period, India produced a record 90.23 million tonnes of wheat which led to an all-time high procurement of about 38 million tonnes this year. Also against the storage capacity of 64 million tonnes the government is facing storage crisis because the godowns have been flooded with record 80 million tonnes of foodgrains.
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: