KARACHI: Trading Corporation of Pakistan (TCP) has finalised a deal for import of some 300,000 tons urea to avoid any shortage in the domestic market in the Rabi season.
Following the directives of the Economic Co-ordination Committee (ECC) of the cabinet, the TCP floated an international tender on October 19, 2022 with opening date of October 26, 2022 for the import of 300,000 tons of urea from worldwide resources.
TCP received poor response and in response to the tender, opened last Wednesday, only three (3) international bidders participated and quoted prices between $520 per metric ton to $801 per metric ton for supply of commodities.
The lowest price was offered by Makhtom International, which offered to supply 300,000 metric tons of urea at $520 per metric ton. Second lowest bid of $645 per metric ton was received from Pacific International and AgiCorp submitted a bid of $801 per metric ton for the same quantity.
As the ECC, in its meeting held on Friday, has approved the summary of the Ministry of Industries and Production and allowed TCP to proceed with urea from the lowest bidder.
ECC allows TCP to import wheat, urea
Accordingly, the state-run grain trader on Monday has awarded the tender to Makhtom Logistic International for the import of 300,000 metric tons urea import. Sources said TCP had got a good price for the urea import as currently prices were very high in the international market.
As per tender term and conditions, 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 (including +5% of WIOLSO) within FOUR (04) working days from award of contract, in the form of a Bank Guarantee from a minimum “A” rated Bank in Pakistan.
The shipments will be made in such a way that the whole awarded quantity must arrive in Pakistan by 10th December, 2022.
As per tender document, if the seller fails to ship the goods within the specified delivery period for any reasons other than Force Majeure, the Buyer shall be entitled, at his option, to cancel the contract and recover the damages, besides forfeiture/encashment of Performance Guarantee. The Buyer will not be held liable to any risks and costs whatsoever in consequence of such cancellation of the contract
The government has taken urea import decision on the recommendation of Fertilizer Review Committee, which in its meeting held on September 5, 2022, discussed the urea fertilizer demand and supply for Rabi season 2023 and after detailed deliberation with stakeholders decided to import urea.
Copyright Business Recorder, 2022
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