NAFED receives no bids for one tender to import maize, defers another

December 3, 2019

NEW DELHI – The National Agricultural Cooperative Marketing Federation of India Ltd did not receive a single bid for its tender to import 50,000 tn maize, which closed at 1100 IST today, industry sources said. The agency was looking to import maize at Tuticorin port. 

Another tender seeking bids to import 50,000 tn maize at the Mangalore port, scheduled to close at 1500 IST today, was deferred to Friday, National Agricultural Cooperative Marketing Federation of India said.  

 The National Agricultural Cooperative Marketing Federation of India has floated two tenders each seeking bids to import 50,000 tn of non-genetically modified maize from the Ukraine. The delivery was expected between Jan 10 and Jan 31. The bids have to remain valid till Dec 24.

 "There were no bids as suppliers were sceptical of giving in for the bid validity period as prices may move during the 20-day validity period," an official with a multi-national firm said. 

 On Jul 9, the Directorate General of Foreign Trade had allowed import of 400,000 tn of maize under the tariff rate quota at a reduced import duty of 15%. The government had said that applications for imports had to be submitted to state trading enterprises, according to an earlier trade notice. 

 MMTC Ltd and National Agricultural Cooperative Marketing Federation of India were allocated an import quota of 200,000 tn each for maize during the current financial year, the Directorate General of Foreign Trade said in a notice. 

 Domestic end-users have been urging the government to allow maize imports due to a smaller crop in 2018-19 (Jul-Jun) and the kharif period of the current season. 

 The government has pegged 2018-19 maize output at 27.2 mln tn compared with 28.8 mln tn in 2017-18. 

 For 2019-20 kharif season, poultry feed and starch manufacturers, the key industrial users of maize, peg maize output at 16.1 mln tn, lower than the government's estimate of 19.9 mln tn.

 Due to an estimated decline in output, maize prices had hit a record high of 2,450 rupees per 100 kg in July. Market players anticipate a jump in prices once the current kharif arrivals decline. Currently, maize is sold at 1,790-1,800 rupees per 100 kg at Nizamabad, largely unchanged on year.