KARACHI: The Trading Corporation of Pakistan (TCP) has received six (6) bids ranging from $284 to $296 per metric tons for the import of 0.3 million tons wheat.
Pakistan is facing wheat shortage due to lower production output this year and accordingly, the federal government decided to import 3 million tons of wheat for domestic consumption. The state-run grain trader - TCP has been given a task of 1.5 million metric tons wheat import to avoid shortage and control the soaring prices of essential commodity. The TCP floated its fifth international wheat import tender on October 8, 2020 for procurement of 0.3 million metric tons. Accordingly, the tender was opened on October 14, 2020 at TCP head office and in response to tender, six international suppliers have submitted bids for the supply of wheat. As per TCP’s tender terms and conditions, the bidders were required to quote bids for a minimum quantity of 100,000 metric tons.
Lowest bid was received from M/s GTCS, which offered to supply 120,000 metric ton wheat at $284 per metric ton. Second lowest bid was submitted by M/s Agrocorp for 100,000 metric ton at $287.06 per metric ton. M/s Aston Agro quoted $287.95 per metric ton for some 110,000 metric ton wheat and M/s LDC offered 106,000 metric tons wheat at $288.47 per metric ton.
Similarly, M/s Swiss Singapore quoted $288.77 per ton for supply of 100,000 metric ton and M/s Ameropa submitted a bid for supply of 100,000 metric tons at $296 per metric ton.
The lowest bid of fifth wheat tender is some $5.5 per metric ton higher than fourth tender. In the previous tender, opened on Oct 5, the lowest bid of $278.50 per metric ton was submitted by M/s Aston and TCP finalized a deal for the import of some 330,000 metric tons at this rate by offering price matching to other participating bidders.
Sources said that currently, TCP is evaluating the received bids and likely to take decision with consultation of the federal government. The bids validity, as per tender terms, is 48 hours from opening time of the bids. As per tender term and condition, part shipment with a minimum 50,000 metric ton will be allowed to the successful bidder. Bids will be evaluated solely on prices basis subject to their conformity with the terms and conditions of the tender documents.
The successful bidder will be required to furnish a performance guarantee, for due and satisfactory performance of the contract, equal to the 5 percent of the value of the contract goods within four working days from award of contract.
So far TCP has finalized deals for 660,000 metric tons as against the target of 1.5 million tons. On the other hand the private sector has booked over 22 ships of some 1.325 million metric tons wheat, out of which some 0.5 million metric tons commodity has already arrived in Pakistan. Some three (3) more consignments of the private sector are expected to arrive this month.
On the other side, TCP’s two shipments, carrying over 0.1 million tons of wheat, have reached Pakistan. TCP’s first wheat consignment of 55,125 metric tons was arrived on October 7, 2020 and the second shipment of 55,000 metric tons was arrived on October 8, 2020. Another wheat consignment, imported by TCP, is expected to reach Pakistan this week.
The country is facing a serious shortage of commodity in the local market and despite the arrival of over half a million tons of wheat grains, the prices of wheat flour have surged to a historical level of Rs 75 per kilogram in the domestic market.
Copyright Business Recorder, 2020
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