New Delhi, July 10
The government has placed orders for import of 511,000 tons of wheat from global suppliers who last week bid for a tender to supply one million tons of the grain.

"The decision was taken to ensure food security," a government official said.

Of the seven companies that had bid, orders were placed with three — Cargill, Toepfer and Riaz — who had quoted the lowest price in the range of 318-370 dollars a ton.

State Trading Corporation had recommended buying 511,000 tons from global suppliers, sources said, adding that at least three million tons could be imported this year.

The STC had on May 30 cancelled a tender to import one million tons of wheat citing the negotiating price of $ 263 was very high. However, barely a month later it invited fresh bids till July 4.

This means that the government would have to pay at least 55 dollars to as much as 100 dollars a ton additional.

The STC had invited fresh bids from international suppliers for receiving deliveries in two tranches. The tender was floated to receive 470,000 tons during August-September and 530,000 tons during October-November.

Wheat output in India, the world's second-biggest producer, is estimated to touch 74 million tons this year, higher than earlier estimates of 73.7 million tons. The government could import up to five million tons of the grain this year to boost buffer stocks and meet its requirement for public distribution system.

Despite the rise in prices, the government is in favour of importing the grain to ensure enough stocks. Against a target of 15 million tons, FCI has so far procured 11 million tons, while it had the opening buffer stock of over four million tons. — PTI