The Trading Corporation of Pakistan (TCP) has awarded tenders for import of 0.5 million tons wheat to seven international suppliers at $23 to $142 per ton higher rates, sources told Business Recorder on Monday.
The Corporation on Monday accepted the tender by JRI for the import of 100,000 tons Canadian wheat at $653.50 per ton, which is $143 higher than an earlier white wheat tender. A tender for red wheat was accepted at $22.5 higher.
TCP has awarded 0.4 million tons red wheat import tender to six different suppliers at average rate of $467 per ton as compared to previous 444.50 dollars. Some 100,000 tons red wheat tenders has been awarded to Glencore; 90,000 tons to Cargill; 80,000 tons to Agricorp; 60,000 tons to Dreyfus, 45,000 tons to Renaisco and some 30,000 tons to WJ Grain.
The last delivery date has been fixed March 15, 2008 at Port Qasim, sources said. After allocation of this tender, total import of wheat during the current fiscal year would reach 1.5 million tons. TCP had invited tenders for the import of 0.6 million tons wheat, including 0.3 million tons white (USA, Canada, Australia) wheat and 0.3 million tons red (Russian and Ukraine) wheat.
Tenders were opened on January 18 and response from exporters was encouraging, as they offered some one million tons wheat supply, sources said. They said that dropping of testing condition on disembarkation port was a major reason behind this encouraging response. Traders said that the prices of wheat have been increasing in the world market. Therefore, the bidders had quoted higher prices.
"TCP is compelled to import wheat at higher price, as the country is presently facing flour shortage," they remarked. Thirteen parties had offered bids for supply of 1.08 million tons wheat against the tender of 0.6 million tons. However 12 exporters participated for the sale of red wheat and only one bidder offered white wheat.
Three bids were also received for supply of 200,000 tons wheat at Gawadar port at 450-489 dollars per ton. However, TCP refused these bids due to customs difficulties. Glencore had offered 65,000 tons at 450 dollars per ton at Gawadar port and some 50,000 tons at price of 467 dollars per ton. Palm Court offered 65,000 tons at 454 dollars at Gawadar.
Renaissco participated with some 50,000 tons at 469.50 dollars per ton; W J Grains 30,000 tons at 469 dollars per ton; and Cremer 45,000 tons at 475 dollars per ton; Agrocrop participated with 80,000 tons at 480.85 dollars per ton.
Cargill offered some 105,000 tons red wheat at 489.42 dollars per ton, Toepfer 35,000 tons at $498.75, and 35,000 tons at $505.09; LDC 200,000 tons at 499.90 dollars and 70,000 tons at 489.00 dollars; Baroda 25,000 tons at 502 dollars; Bunge 40,000 tons at 525 dollars; CHS 40,000 tons at 535.82 dollars.
JRI local agent of Canadian Wheat Board had offered 150,000 tons at $653.50 per ton. Despite several attempts no TCP official could be contacted to get their views on this issue.