KARACHI: The Trading Corporation of Pakistan (TCP) was unable to obtain competitive bids in the international sugar import tender, reportedly, for not making suggested amendments to the tender.
Following the directives of the federal government, the state-run grain trader is in process of procurement of sugar and wheat for the domestic consumption. TCP, on August 8, 2020 issued tender for the import of some 0.3 million metric ton sugar to avoid shortage in the domestic market. Prime Minister Imran Khan has also asked advisor on commerce, Abdul Razak Dawood for the timely import of sugar and wheat to control the soaring price of the commodities in the local market.
The international sugar import tender was opened on Tuesday at TCP head office; however, the response from international bidders was very poor. In response to TCP's sugar import tender only two parties shown interest for the supply of required commodity.
Lowest bid was submitted by Al-Khaleej, which quoted $471 per metric ton for DPO (Delivered at Place Unloaded), $ 459 per metric ton for bulk and $453 per metric ton for containerized shipment. The second bid was from the M/s Coral and it has offered to supply sugar at $474 per metric ton in bulk. As per clause 11 (Bid Evaluation Criteria) of sugar tender, offers for containerized shipment on CFR basis, below by US Dollar 06 PMT (Dollar Six only) than the offer of Break Bulk on CFR basis shall be deemed equivalent. In addition, offers for containerized shipment on DPU basis, higher by US dollar 12 PMT (US Dollar Twelve only) than the offer of Break Bulk on CFR basis shall be deemed equivalent. It means, the entire bids of Al-Khaleej are equivalent. Sources told Business Recorder, although TCP held a pre-bid meeting with the potential bidders of sugar on August 13, 2020 for discussion on the tender terms and conditions and some amendments were also announced in the bidding documents after the meeting.
However, reportedly, the Executive Committee of Management (ECM) not addressed all the suggestions and only few amendments were made, while some suggestions were dropped despite knowing that it may resulted in lower participation in the tender.
They informed that the condition of Granular Sugar (Bold to Medium) was major reason of lower participation in the tender. Some of interested suppliers in the pre-bid meeting raised this issue and requested the TCP to include the "Fine to Medium" in commodity specifications.
TCP's official assured the meeting participants that side amendment will be made but when amendments were announced in the tender, this suggestion was completely ignored.
Sources said that some of interested suppliers even a day before the tender asked the TCP to include the "Fine to Medium" in commodity specifications for competitive bids and despite that this amendment was not made. Despite repeated attempts to contact the chairman TCP Riaz Ahmed Memon for a version, he did not receive the call. Meanwhile, TCP has extended the wheat import tender date for one day and now it will be opened today at TCP head office.
Copyright Business Recorder, 2020
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