Trading Corporation of Pakistan (TCP) has linked sugar procurement payments to clearance of growers' dues by the sugar mills. Following the directives of the federal government, the state run grain trader has recently issued a tender for purchase of 0.3 million metric tons of sugar to ease the financial difficulties of sugar mills and ensure the procurement of sugarcane from the growers at the prescribed rate. The tender will be opened on January 25, 2017.
As per terms and conditions of the tender issued by TCP, mills will get payment of sugar in three phases. As per payment schedule, forty (40) percent or first installment of payment of total value of procured commodity from the sugar mills will be made on submission of required documents including commercial invoice and surveyor certificate.
Second installment of forty (40) percent will be made on submission of a certificate from the Provincial Cane Commissioner of the concerned province to the effect that the mills have cleared all the dues of sugarcane growers up to and including the Crop Year 2017-18. While, the remaining 20 percent payment (final installment) will be released after completion of lifting of entire quantity from the mill premises by TCP, subject to submission of original delivery order, sales tax invoice, final lifting report and clearance certificate issued by TCP.
As per tender's terms and conditions, the procurement price will not exceed Rs 48,000/per metric ton (Rs 48/- per kg). Moreover, preference will be given to the lowest bidder in ascending order to the maximum limit of Rs 48 per kg. All offers/bids must remain valid for acceptance for fifteen (15) working days.
Mills have been asked to made offices for a minimum quantity of 5,000 metric tons and maximum 10,000 metric tons in multiples of 1,000 metric tons. However, TCP reserves the right to increase /decrease minimum/maximum quantity/limit to be purchased from each bidder in order to achieve the targeted/tender quantity.
Bids will be accompanied by a Bid Money/Security equivalent to 2 percent of the total value of offered quantity of the Bid and Bid Money/Security of successful bidder(s) will stand forfeited without any notice, if they fail to provide Performance Guarantee within the prescribed time and the successful bidder will be required to furnish a performance bond within five (5) working days of acceptance along with signed contract.
TCP will accept the sugar of required specifications, in sound and saleable/exportable quality of crop year 2017-2018, in 50 kg (net) Poly lined translucent polypropylene (PP) woven bags. The stocks purchased by the TCP will be stored at mills' godowns, free of charge until final lifting and no tampering with the stock by the supplier shall be allowed.
Ten percent of the total value of the sold quantity Performance Bond/Bank Guarantee will be forfeited without any notice in case the supplier commits default in supply of the contracted quantity within the given timeline or any breach or fails to fulfill any of the terms and conditions of the tender.