TCP scrapped tender for lack of reliable bank guarantees: parliamentary panel told

Trading Corporation of Pakistan (TCP) has scrapped lowest bid of $723 per ton of 0.15 million tons sugar import tender as the lowest bidder failed to provide reliable bank guarantees. This was revealed by TCP chairman Saeed Khan, while briefing a parliamentary panel on Thursday.
The lowest bidder World Base Fze-Dubai-Singapore, he said, had offered $723 per tonne for supply of sugar, however, the firm had bank guarantees of Bank of Dubai-Kenya which were not acceptable for any bank in Pakistan. Import of 1.2 million tonnes sugar, he added, would be completed by May 15 and the landed cost of imported sugar would be between Rs 64 to 67 per kilogramme.
The TCP plans to import sugar in six tenders and the next one is scheduled for February 13. He informed the committee that the country has two million tonnes of sugar stock compared to 1.7 million in the same period of last year. However, the price increase in the international market, smuggling and speculative hoarding have resulted in continuous increase in sugar price, he added.