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Coronavirus
VERY HIGH
Pakistan Deaths
15,754
13524hr
Pakistan Cases
734,423
468124hr
Sindh
269,840
Punjab
255,571
Balochistan
20,499
Islamabad
67,491
KPK
101,045

KARACHI: The Trading Corporation of Pakistan (TCP) on Friday awarded another contract for the import of 0.32 million metric tons of wheat at $286.20 per metric ton. In pursuance of the federal government directives, TCP is importing some 1.5 million metric tons of wheat from various sources worldwide to avoid shortage of the commodity in the domestic market.

The state-run grain trader opened the fifth international wheat import tender on November 3 for supply of 320,000 metric tons (5 percent more or less) of the commodity. The TCP wheat import tender attracted some eight bids ranging from $286.20 to $309.5 per metric ton.

The lowest bid was submitted by M/s LDC, which quoted a price of $286.20 per metric ton for supply of 110,000 metric tons of wheat. The highest price of $309.5 per metric ton was submitted by M/s Falcon Bridge. The bids validity, as per tender's terms and condition, was 72 hours from the opening time of the bids.

The state run grain trader evaluated the lowest bids, which was found as per tender's terms and conditions. Accordingly, on Friday the TCP decided to award the contract to the lowest bidder, M/s LDC, for the entire quantity of 0.32 million as it was agreed to enhance the bid quantity.

The successful bidder will be required to furnish a performance guarantee for due and satisfactory performance of the contract equal to 5 percent of the value of the contract goods within four working days from award of contract.

With award of this contract, overall TCP so far has finalized deals for the import of some 1.32 million metric tons, of which some 220,000 metric tons of wheat has already reached Pakistan.

Another shipment of over 50,000 metric tons is arriving on November 12. The meeting of Economic Coordination Committee (ECC) of the cabinet is scheduled on Monday, in which further wheat procurement plan from international resources will be finalized.

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 arrive by 20th February 2021. In addition, 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 at the rate of US$0.25 per metric ton per day.

Any further extension will be at the sole discretion of buyer at the seller's risk and cost to be determined by TCP. Previously, the late maximum late shipment period was 7 days. It may be mentioned here that the country is facing wheat shortage due to lower crop output.

As per the estimates the shortage is over 3 million tons. The federal government allowed duty free import of wheat in July and some 3 million tons of wheat import target was set. About 1.5 million tons quota was given to the private sector and the TCP was directed to import 1.5 million, besides some 0.5 million on government to government basis from Russia.

Copyright Business Recorder, 2020