KARACHI: In response to Trading Corporation of Pakistan's (TCP) wheat import tender, some nine (9) bidders have submitted bids ranging from $ 233.85 per metric ton to $296.60 per metric ton.
Following the directives of federal government, TCP floated an international tender on August 8, 2020, for procurement of some 1.5 million metric tons wheat in bulk cargo into Pakistan. The federal government also granted special relaxation in the Public Procurement Regulatory Authority (PPRA) Rules aimed at ensuring the timely arrival of commodities to avoid any shortage of the commodity in the domestic market.
Accordingly, the tender was opened on Wednesday at TCP head office and as many as nine international parties have shown interest for the supply of wheat to Pakistan.
As per TCP's tender terms and conditions, the bidders were required to quote bid for a minimum quantity of 200,000 metric tons and entire bids are submitted the minimum quantity of 200,000 metric tons.
Lowest bid was received from M/s Swiss Singapore which was agreed to supply 200,000 tons wheat at a price of $233.85 per metric ton. Second lowest bid was submitted by M/s Agrocorp for same quantity at $238.75 per metric ton. M/s Bunge offered to supply wheat at $248 per metric tons, M/s Grain Export $249.50 per metric ton and M/s Holbud Ltd. $249.92 per metric ton.
In addition, M/s Austan Agro Industry's bid was $250.40 per metric ton for 200,000 tons, M/s Grain Crop Operation $255.50 per metric tons and M/s CHS $259.00 per metric tons. Highest bid was received from M/s Hakan Agro, which quoted $269.60 per metric ton for supply of 2000,000 ton wheat.
The TCP is in process of bid evaluation and no has so far taken on the tender. The TCP board procurement committee will meet Thursday (Aug 20) to finalize sugar and wheat deals.
The bidders were also required to submit their bids along with the technical specification of their wheat, to be in conformity with the specification of Ministry of National Food Security & Research.
As per tender term and conditions, bidder were required to submit bid accompanied by an original Bid Bond equivalent to Two percent (2%) of the CFR value of the offered quantity of the Bid in the form of a Demand Draft or Pay Order in US Dollars in the form of Bank Guarantee.
In addition, successful bidder will be required to furnish a Performance Guarantee, for due and satisfactory performance of the contract, equal to Five percent (5%) of the value of the contracted goods within FOUR (04) working days from award of contract, in the form of a Bank Guarantee from a Prime Bank.
Successful Bidder(s) will be required to ship the entire tendered quantity in such a way that the entire quantity must arrived by 31st January, 2021 and 1st shipment of minimum 50,000 MT with 5 percent more or less will be made within two weeks (excluding voyage time) from the date of opening of LC.
It may be mentioned here that the federal government has already allowed the private sector for the duty free import of wheat to meet the domestic demand. Accordingly, the private sector has initiated import and finalized over 0.5 million wheat import deals.
During the FY20, wheat output was 24.9 million tons as against the consumption of some 25-26 million tons, therefore the government decided to import the commodity. Wheat and its products prices are increasing for the last two months on the domestic market and wheat flour prices surged to Rs 70 per kilogram.
Copyright Business Recorder, 2020
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