The Trading Corporation of Pakistan (TCP) on Friday extended the date for price matching of lowest price of Rs 50,150 per ton by three days, received in tender to complete procurement of 200,000 tons of sugar from domestic sugar mills. Sources told Business Recorder that the TCP's move was aimed at increasing procurement transparency, as some mills were of the view that they had not received the corporation's price matching offer.
As many as 47 bids received from local sugar mills in response to the TCP's sugar procurement tender issued on May 21 for procuriing 200,000 tons of sugar. The tender was opened on Thursday, June 7. Rates quoted by various bidders, for varying quantities, ranged between Rs 50,510 and Rs 55,000 per ton. Of all bids, M/s. Sheikhoo Sugar Mills quoted the lowest responsive price of Rs 50,510 per ton for a quantity of 10,000 ton. As the Sheikhoo Sugar Mills' bid was responsive, being the lowest and conforming to all tender terms and conditions, the offer was accepted by the TCP. Accordingly, the mill was awarded the contract for 10,000 ton of sugar.
However, to complete the purchase of the targeted quantity, TCP asked other bidders, who quoted higher rates in the tender, for matching the lowest bid price by June 8. Although, several bidders had agreed to match the lowest price till Friday evening, some of them complained that they had not received the TCP's price matching offer. Therefore, the date was extended by three days to make the sugar procurement process more transparent and provide an opportunity to responsive bidders for availing TCP's offer.
Now, responsive bidders could match lowest bid price till Tuesday, June 12 this year. At least 15 or 16 bidders have so far agreed to match the lowest bid price, sources said. They said the overall offered quantity was still less than the target of 200,000 tons and, therefore, the extension would help completing the procurement process, avoiding the floatation of a new tender for the remaining quantity.
TCP officials said that the corporation had sufficient funds for procuring sugar, as payment were being received from various government institutions and "OD is still under limit". On the request of Pakistan Sugar Mills Association, the Economic Co-ordination Committee of the Cabinet (ECC) had asked TCP to procure another 200,000 tons of sugar from local mills.
Before this procurement, TCP had procured 478,000 tons of sugar from local mills in two phases. In the first phase, 378,000 tons of sugar was procured at Rs 46,250 per ton and in the second one, about 100,000 tons of sugar was purchased at Rs 45,720 per ton. So far, approximately a total of Rs 22 billion had been spent on buying sugar from domestic mills.