A spokesman for Trading Corporation of Pakistan (TCP) has held the Ministry of Food, Agriculture and Livestock (Minfal) responsible for the opening of urea tender prior to the stipulated date. This led to cause loss of millions of dollars to the national exchequer.
"In fact the tender opening date was fixed for November 15, 2008 but on the instructions of Additional Secretary, Minfal on November 6, 2008, the date of opening of tender was changed to November 12, 2008," the spokesman added. TCP awarded tender at 284.90 per ton on November 12 on C&F basis but on November 15 urea price was about $260 per ton.
Chairman TCP Muhammad Saeed, however, had clearly stated in a telephonic chat with Business Recorder on November 14 that it was not the fault of TCP. "We are the implementing agency and in the case of urea, we followed the instructions of Minfal," he further stated.
A clarification issued by the TCP said that TCP being a PPRA compliant, the tender opening was transparent as it was opened before all the representatives of the foreign urea suppliers. As per PPRA Rules 2004, the tender is awarded to the lowest bidder. Accordingly, the tender was awarded to the lowest bidder and those who matched the lowest offered price ie $284.90 C&F Pakistan.
"Comparing with Indian transaction of about 0.8 million urea at $255-256 per ton as stated in the news. In this regard it is clarified that India has awarded contracts on FOB basis and not on C&F basis as reported in the international market reports. The other most important factor that India is having more ports as compared to Pakistan and their dispatch rate is much higher than Pakistan.
"The foreign sellers while biding the commodity keep many factors in the composition of price. C&F price includes the freight, margin on performance bond and their other expenditures which being the price closer to TCP's C&F purchase price, the spokesman concluded.
Comments
Comments are closed.