KARACHI: In order to avoid wheat shortage in domestic market, the federal government has initiated the import of commodity and Trading Corporation of Pakistan (TCP) opened the first wheat import tender on Wednesday.
In response to the TCP wheat import tender, some 7 (seven) bidders submitted tenders ranging from $515.49 per metric ton to $537 per metric ton.
The country is facing wheat shortfall this year and the federal government has decided to import commodity from world market to avoid any shortage in the domestic market and keep the prices stable.
Following the directives of federal government, TCP - a state-owned commercial organization working under the Ministry of Commerce, on May 6 floated an international tender and invited sealed bids for supply of 500,000 metric tons wheat through worldwide sources on CFR Karachi basis (in bulk) for Jun-July 2022 shipments.
Accordingly, the tender was opened on Wednesday, at TCP head office and as many as seven international suppliers have shown interest in the supply of wheat to Pakistan.
As per TCP’s tender terms and conditions, the bidders were required to quote bids for a minimum quantity of 100,000 metric tons and entire bids were submitted slightly higher than minimum quantity.
Lowest bid was received from M/s Falcon Bridge which agreed to supply 110,000 metric tons of wheat at a price of $515.49 per metric ton. Second lowest bid was submitted by M/s CHS for the same quantity at $520 per metric ton. M/s Bunge offered to supply 110,000 metric tons wheat at $ 526 per metric ton and M/s Cargill submitted a bid of $532.4 per metric ton.
In addition, M/s Agrocorp submitted bid of $534.38 per metric ton for 110,000 metric tons, M/s LDC bid was $534.9 per metric ton and highest bid was received from M/s Viterra, which offered to supply commodity at $537 per metric tons.
After opening the tender, TCP is in process of bid evaluation and no one has so far taken on the tender. The received offers will be valid for Eighty (80) hours from submission of bids.
The bidders were also required to submit their bids along with the technical specification of their wheat, which shall be strictly in accordance with the standards and specifications prescribed in the tender document and Import Policy Order in force.
All bidders were required to accompany the bids by an original Bid Bond equivalent to TWO percent (2 percent) of the CFR value, in the form of a Demand Draft or Pay Order in US Dollars or in the form of Bank Guarantee in US dollars.
As per tender, the interested parties who have previously not fulfilled their contractual obligations with TCP were not eligible to participate in the bids, unless they clear their dues along with penalties or fulfil their contractual obligations in services and commodities with TC’P, as the case may be, before the tender opening date. Furthermore, those firms against which black listing procedures have been initiated by TCP were also not eligible to participate in the wheat tender.
Copyright Business Recorder, 2022