TCP completes import of 0.1 million tons of urea

Following the directives of the federal government, the Trading Corporation of Pakistan (TCP) has successfully completed the import of some 0.1 million tons of urea. The National Fertilizer Development Corporation (NFDC) estimated some urea shortage in the domestic market, of which, in the mid of September, the Economic Coordination Committee (ECC) of the Cabinet decided to import some 100,000 tons of urea to ensure sufficient supply of the commodity in Rabi season.
Accordingly, the TCP was asked to import 0.1 million tons of urea to avoid the expected shortage in the domestic market. The state run grain trader issued a tender for the import of 0.1 million tons of urea in September and on October 24, the state run grain trader awarded the contract for the import of urea at $346.11 per MT to avoid shortage of urea.
First ship namely MV Grace carrying consignment of 50,600 metric tons of imported urea reached Pakistan on December 1, 2018. While another ship MV SBI Tethys with 50,000 metric ton (5 percent more or less on seller option) was arrived on December 16.
With the arrival of these two shipments, the TCP has completed the import of 0.1 million tons of urea for domestic consumption. The TCP was only responsible for the import of urea, while its distribution, transportation and bagging are being handled by the National Fertilizer Marketing Limited (NFML).
The federal government has fixed a price of Rs 1,712 per 50-kilogram bag for the imported urea to facilitate farmers. Locally produced urea is selling at Rs 1,820 per bag in the domestic market. In addition, the government has also asked provincial authorities to launch crackdown on hoarders and black marketers of urea.
Meanwhile, as the ECC has decided further import of some 50,000 metric tons of urea, the TCP has also issued another urea import tender.
State run grain trader has invited sealed bids from the international urea suppliers and producers for supply of 50,000 metric tons commodity through its local offices or local agents having capacity to supply urea in bulk through worldwide sources on C&F basis as per the TCP's the terms and conditions.
Interested bidders have been asked to submit bids, prepared in accordance with the instructions in the tender documents by January 3, 2019 latest by 10:30 AM. The received bids will be opened the same day at 11:00 AM in the TCP's Board Room, in the presence of bidders or their authorized representatives who may wish to be present.