The highest quotations received by the three state trading firms were higher than the government's floor price of USD 260 per tonne for export of the FCI-procured wheat. (Agencies)
To make exports more attractive, the base rate last month was revised downwards from USD 300 a tonne.
"We have received the highest bids in the range of USD 284.7 and 289.9 per tonne for wheat export from Mundra, Kandla, Krishnapatnam and Kakinada ports. The price quotations are above the floor price," a government official said.
An empowered committee, headed by the Commerce Secretary, will approve the list of successful bidders on Tuesday after studying the international price trends, the official said.
STC had invited tenders for export of 1.2 lakh tonnes of wheat from Mundra, while PEC had invited bids for export of 90,000 tonnes from Kandla and 70,000 tonnes from Krishnapatnam ports. MMTC had floated a tender for export of 60,000 tonnes of wheat from Kakinada port.
Traders said that export of wheat at this price seems to be feasible as currently 'soft red' winter wheat is quoting at USD 280 per tonne, while black sea wheat is at USD 288.
These are the first bids invited by PSUs to export FCI-procured wheat after government lowered the floor price.
Last month, the PSUs had floated tenders for export of 1.5 lakh tonnes of wheat. The bids, however, had to be rejected because the trading firms got a highest bid of only USD 267 per tonne against the floor price of USD 300.
FCI can export two million tonnes of wheat till June 31, 2014 at a base price of USD 260 per tonne.
In 2012-13 fiscal, the government had earned USD 1.4 billion from export of 4.2 million tonnes of wheat by PSUs. Indian wheat had fetched an average price of USD 311.38 per tonne last fiscal.
The highest quotations received by the three state trading firms were higher than the government's floor price of USD 260 per tonne for export of the FCI-procured wheat.