After a gap of 10 years, Pakistani wheat will be exported without subsidy as a number of bidders have agreed to procure commodity at higher than minimum price fixed by PASSCO. In order to offload the stocks of wheat before arrival of new crop, Economic Coordination Committee (ECC) of the Cabinet allowed the export of some 0.1 million tons of wheat.
Accordingly, Pakistan Agricultural Storage & Services Corporation (PASSCO) invited bids for the sale of commodity and fixed a minimum price of Rs 32,500 per metric ton. In response to the wheat export tender some 42 bidders/ exporters submitted bids for export of commodity. Out of total participants, some 12 bidders agreed to procure commodity without subsidy and at higher than minimum price fixed by PASSCO.
The highest bid was received from M/s Abdul Wasey Floor Mills, which was agreed for procurement of 10,000 tons wheat at Rs 32,759 per metric tons compared to minimum price of Rs 32,500 per metric ton. M/s Chappal Traders and M/s LP Trading Company were the second highest bidders as both quoted Rs 32,666 per metric ton for 25,000 metric tons and 10,000 metric ton respectively.
M/s D.D Ship breaker was the third highest and offered to procure 25,000 metric tons of wheat at Rs 32,629 per metric ton. M/s M.M Commodities quoted Rs 32,627 per metric ton for 25,000 metric tons, M/s Chappal Enterprises Rs 32,556 per metric ton for 10,000 metric tons, Conwill Pakistan Limited Rs 32,529 per metric ton for a quantity of 25,000 metric tons, M/s Sindh Feed and Allied Products Rs 32,524 per metric ton for 25,000 metric tons and M/s Meskey and Femtee Trading Co. Rs 32,517 per metric ton for procurement of 25,000 metric tons.
In addition, M/s Garib Sons Pvt. offered Rs 32,513 per metric ton for 25,000 metric tons, M/s Abu Bilal Trading Rs 32,512 per metric ton for 25,000 metric tons and M/s Tahhar International quoted Rs 32,506 per metric ton for 25,000 metric tons. While, the remaining bids were less than the minimum price fixed by the PASSCO.
Sources said that previously over 2 million tons of wheat was exported at subsidies ranging from $155 per metric ton to $159 per metric ton due to lower international price. However, with increasing prices of wheat in the world market and rupee devaluation, exporters have agreed to export commodity without government subsidy.
Currently, average wheat price in the international market is about $240 per metric ton compared to $210 per metric ton previously. The export of wheat without subsidy will be initiated after a gap of ten years, sources said.
Sources said that as per tender term and condition, as bidders were required to submit bids accompanied by 2 percent Earnest Money of the total value of the bid amount in shape of Bank Draft/Pay Order/Cashier's Cheque/Banker's Cheque
The successful bidder will be required to sign an agreement for the demanded quantity of wheat within seven days after issuance of acceptance letter. To sign the agreement, the bidder will be required to deposit further 3 percent to complete the 5 percent Performance Money requirement.
Sources said that some bidders have deposited bids less than 2 percent of earnest money and as per tender term these bids will not be entertained. The successful bidders (Highest Rate) will have to deposit total value of the bid stock and lift the entire contracted quantity within 30 days and minimum 40 percent of contracted wheat stock must be lifted within first 15 days of lifting period or up to extended time approved by the Competent Authority (MD PASSCO) upon request of the bidder with cogent reasons on "case to case" basis, after signing of agreement.
Successful bidders can lift the stocks from designated PASSCO Centers in packets of 1,000 metric tons by depositing full amount equivalent to 1,000 metric tons. Currently PASSCO is evaluating the bids and the tender will be awarded in the next few days, sources said.
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