KARACHI: Trading Corporation of Pakistan's international wheat import tender attracted eight (8) bids ranging from $286.20 to $309.5 per metric ton for the import of 0.32 million tons.
Following the directives of the federal government, the state-run grain trader is importing some 1.5 million metric tons of wheat to fill the supply and demand gap in the domestic market.
On October 25, 2020, the state-run grain trader issued fifth wheat import tender and invited sealed bids from the international wheat suppliers for supply of 320,000 metric tons (5 percent more or less) wheat through their local offices or representatives, which have capacity to supply wheat (in bulk) through worldwide sources.
The tender was opened on Monday and in response to TCP's international wheat import tender, eight international suppliers participated in the tender. Lowest bid was submitted by M/s LDC, which quoted $286.20 per metric ton for supply of 110,000 metric tons of wheat. The second lowest bid of $287.38 per metric ton was submitted by the M/s Agrocorp for 115,000 metric tons.
M/s GTCS quoted $288 per metric ton for some 120,000 metric tons and M/s Aston offered 110,000 metric tons of wheat at $292.70 per metric ton. Similarly, M/s Solaris submitted bid of $293.60 per metric ton for supply of 100,000 metric tons and M/s Swiss Singapore quoted $294.60 for 100,000 metric tons. M/s Cargil offered to supply 112,000 metric tons at $296.5 per metric ton and M/s Falcon Bridge quoted $309.5 per metric ton.
The state-run grain trader is evaluating the received bids and likely to take a decision with consultation with the federal government. The bids validity, as per the tender's terms and condition, is 72 hours from opening time of the bids.
The successful bidder will be required to furnish a performance guarantee, for due and satisfactory performance of the contract, equal to the 5 percent of the value of the contract goods within four working days from award of contract.
As per terms and conditions of the tender, the successful bidder(s) will be required to ship the entire tendered quantity of 320,000 metric tons in such a way that the entire quantity must be arrived by 20th February, 2021. However, TCP will reserve the right to change/revise the shipments schedule according to the awarded quantity and port availability/situation etc., at the time of issuing the Award letter or within Laycan time. In addition, in case Letter of Credit (LC) is delayed due to any fault of suppliers, the shipment date will be calculated from the date of award instead of opening of LC.
According to tender, if the goods are not shipped within the contracted period, the buyers will accept late shipment for a maximum period of five (05) days subject to payment by the sellers of penalty @US$ 0.25 per metric ton per day. Any further extension will be at the sole discretion of buyer at seller's risk and cost to be determined by TCP. Previously, the late maximum late shipment period was 7 days. The TCP has already signed contracts for the import of some one million metric tons of wheat to meet the domestic demand and ensure price stability.
Copyright Business Recorder, 2020