Urea tender validity extended till Monday: All bidders match the lowest bid price

KARACHI: All bidders of the urea import tender, conducted by the Trading Corporation of Pakistan (TCP), have matched the lowest bid price and extended bids validity up to Monday.

Following the directives of the federal government, the state-run grain trader - TCP initiated urea import to ensure uninterrupted supply during the Rabi season in the domestic market as the National Fertilizer Development Center has estimated over 0.5 million metric tons of urea shortage in the Rabi season.

Accordingly, TCP invited bids from the international urea suppliers for the import of 200,000 metric tons directly or through their local offices or representatives having capacity to supply urea in bulk through worldwide sources, on CFR Karachi or Gwadar as per TCP’s shipment schedule.

Import of 0.2MMTs of urea: TCP may be granted exemption from procurement rules

The tender was opened on Monday and some five international suppliers submitted offers for the supply of urea. A bidder, namely Syed Allauddin & Company, regretted. Lowest bid of $389.9 per metric ton was submitted by ABG Trading and it was agreed to supply 100,000 metric tons of urea. West Trade International offered to supply 50,000 metric tons of urea at $ 394.49 per metric ton at Karachi and $ 404.90 per metric ton for Gwadar. Another bid was received from Key Trade for supply of 100,000 metric ton urea at $405.50 per metric ton.

Agri Commodities offered to supply 200,000 metric tons urea at $414 per metric ton and SAMSUNG quoted $419 per metric ton for Karachi and $ 420 per metric ton for Gwadar port for supply of 50,000 metric tons.

As per tender’s terms and conditions, bids less than the quantity of 30,000 metric tons will not be accepted and total quantity of urea must reach the designated ports in Pakistan in accordance with the shipment schedule given in the tender document.

Sources said as the lowest bid was received for the half of the tender’s quantity, the other bidders agreed on price matching and supply of remaining quantity.

In addition, on the request of the TCP, all bidders have extended bids’ validity period for another four days. Initially, the bids validity was for three days, ie, Nov 16, 2023, however, now the validity has been extended up to Monday Nov 20, 2023.

Sources said as the federal government is making efforts to import the urea on a government-to-government basis and the final decision will be taken in a meeting of the Economic Coordination Committee (ECC) of the cabinet to be held on Monday. Therefore, the TCP has so far not taken any decision on the tender and bidders have been asked for the bids’ validity.

The ECC has already taken the decision to import 200,000 metric tons of urea aimed at avoiding any shortage in the domestic market.

Copyright Business Recorder, 2023