His offer was the lowest compared with those of six mills in Belgium, Egypt, Pakistan and Turkey. With 442 dollars per tonne, the Mauritian company Les Moulins de la Concorde (LMLC) won 100% of the contract awarded by the State Trading Corporation (STC) for the supply of 76,000 tons of flour in the country for the period February 2012 to in January 2013.
LMLC will have to provide the local market from 75 to 80% of the contract Type A flour Also called the " French flour", it goes into the making of bread. The remainder of the contract will be honored with the provision of meal type B, said flour from Australia, used to prepare faratas, the dholl-puri, pastries and pizzas, among others.
And for the first time, at the request of STC, LMLC provide meal type B in 25 kg bags to see how consumers react.The goal is to enable the household, especially in rural areas, have access to this type of flour. This, while it costs 3 dollars more for the package in 25 kg units.
A close look is the firm Erisler Gida Turkey had proposed the best offer with 429 dollars a ton. The cost of transshipment and storage, however, played against him because they would cost 13, 58 dollars a ton to the STC when LMLC is willing to deliver the flour directly to its warehouses.
The prices offered, according to the STC, are reasonable because the world price, the rate was 15% less last year.With this contract, the STC believes that the subsidies on flour will be lower for 2012. It had cost Rs 500 million taxpayers in 2011.
With the retail price of Rs 7.35 to the pound, flour sells for much less than in countries that grow wheat! The STC will therefore have margins to pay subsidies of around Rs 300 million to maintain that price. In addition to the flour in housing 25 kg, the STC will test the market response with bags of rice ration to 25 kg.
This contract LMLC seems to close the controversy surrounding the draft STC to engage in the export of flour in the region. The idea is to buy flour LMLC reduced price and sell more cheaply elsewhere to keep its finances afloat. This was not the taste of the mill.