KARACHI: Trading Corporation of Pakistan (TCP) has finalized another deal for the import of some 0.33 million metric tons of wheat at $278.50 per metric ton for domestic consumption. Following the directives of the Economic Coordination Committee (ECC) of the cabinet, the state-run grain trader is importing the commodity to avoid shortage and arrest the soaring prices of wheat flour.
However, the TCP is facing criticism for 'lacklustre' approach in timely import of essential commodity. The TCP was given the task of 1.5 million tons wheat import in August and so far it has finalized deals for 660,000 metric tons. On the other hand private sector has booked over 30 shipments of some 1.3 million metric tons of wheat, out of which some 0.48 million metric tons has already arrived.
The TCP floated fourth international wheat tender on September 26 for procurement of some 0.3 million metric tons of wheat. The tender was opened on October 5 and as many as eight international parties expressed interest in supplying wheat at price ranging from $278.50 to $290 per metric ton.
The lowest bid was submitted by M/s Aston, which agreed to supply 120,000 metric tons of wheat at $278.50 per metric ton. Second lowest bid was received from M/s Grain Export for 100,000 metric ton at $280 per metric ton and third lowest bids was from M/s CHS, which quoted $283 per metric ton against 100,000 metric ton.
As the lowest bid was meeting all tender requirements, TCP with consultation of ministry of food security accepted the bid of M/s Aston and offered other participating parties for price matching.
Second and third lowest bidders M/s Grain Export and M/s CHS accepted the TCP's price matching offer and agreed to supply some 100,000 metric tons each. Cumulatively, TCP has finalized deal on the import of some 330,000 metric tons wheat through fourth tender.
During the last six weeks, TCP has issued four wheat import tenders, of which two were scrapped due to high prices. TCP has made agreements for the import of 660,000 metric tons wheat through remaining two tenders as against import target of 1.5 million metric tons.
The TCP's first wheat import tender was opened on August 19, 2020 and some nine (9) bidders submitted bids ranging $ 233.85 per metric ton to $296.60 per metric ton and a deal for the import of some 330,000 metric tons wheat was finalized with two suppliers namely M/s Swiss Singapore and M/s Agrocorp at $233.85 per metric ton.
Second wheat import tender was conducted on Sep 15, 2020 for 170,000 metric tons and lowest bid was $274 per metric ton. As the quoted prices were much higher than first wheat tender, TCP scrapped the second wheat tender on the directives of federal government.
The TCP opened third wheat import tender on September 23, 2020 for import of 0.3 million tons commodity and received bids amounted to $280.90 to $288 per metric ton. The third wheat tender was also scrapped on higher quotation by the foreign suppliers.
The TCP's first wheat shipment was arrived on Wednesday. The first vessel MV DENSA JAGUAR, carrying 55,125 metric ton wheat berthed at Port Qasim on October 7, 2020. The second imported consignment of 55,000 metric tons of wheat by TCP arrived on Thursday.
On Thursday, the state-run grain trader to issue another wheat import tender for some 0.3 million tons with minimum quantity of some 100,000 metric tons Thursday (today).
Copyright Business Recorder, 2020
Comments
Comments are closed.