Indian wheat still in tenders’ competition, to free up storage as quickly as possible Indian private companies will be allowed to export state fund wheat

Tradekeynews.Several Indian officials and traders confirmed the previously released information that the Indian government may allow private companies to export wheat from the state fund. It is reported by news agency Dow Jones.

This season,government allowed the export of 4.5 million tons of wheat from government stocks. Now wheat export from state fund can hold only three public companies: MMTC, STC and PEC. Despite strong exports in the past few months, wheat stocks remain excessively high. As by January 1, wheat stocks in the state fund is 34.4 million tons, three times more than necessary. The government was forced to take additional measures to free storage for the new crop, harvesting of which will begin in February.

see:Dubai importers bought Indian wheat in tender

If the opportunity to export wheat from state stores will and private companies can accelerate the export of wheat in half. Now the volume wheat exports are about 350 thousand tons per month.

To free up storage as quickly as possible, government may decide to sell wheat to private exporters on ex-elevator basis, or free on board. Now Indian state companies sell wheat at tender on FOB basis. This process is quite time-consuming, near this shipping wheat cost from silos to ports lie on treasury charge.

According to traders’ calculations, if government will sell wheat exporters for the same price as company-processors (about $ 278 per ton), price on FOB basis will be at $ 315-320 per ton. Last week, cheapest Australian wheat was offered at $ 345 per ton on FOB basis.

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This year, India plans to export 10 million tons of wheat. Exports in value terms could exceed $ 3 billion, while maintaining the current level of world prices.