Two Indian state cos to issue wheat tenders

A labourer removes dust from wheat grains at a market in Chandigarh April 19, 2007. Two Indian state-run trading firms may float wheat import tenders within the next three weeks, a government official said on Wednesday, to further build stocks the country uses to curb any rise in prices.

NEW DELHI (Reuters) - Two Indian state-run trading firms may float wheat import tenders within the next three weeks, a government official said on Wednesday, to further build stocks the country uses to curb any rise in prices.

Eight trading firms, including Australia's AWB, Glencore and Cargill on Monday offered to sell just over a million tonnes of wheat at $397-$487 a tonne against a tender issued by another state firm, MMTC.

The official did not say how much grain the two companies -- PEC Ltd and State Trading Corp Ltd -- will look to buy.

"PEC plans to issue a tender by the month-end, while State Trading Corp hopes to float it by December 15," the senior food ministry official, who did not wish to be identified, said.

"It will be a little early to talk about the size of the tenders," he said. "MMTC has got bids totalling 1.06 million tonnes. Let us see how much it buys."

MMTC is expected to award contracts this week and shipments are expected to be tied-up for between December and March 2008.

India, importing wheat for the second year in a row, plans to buy 2.3 million tonnes in 2007 and has so far contracted to import 1.3 million tonnes.