ECC takes step to forestall wheat shortage

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved the lowest bid offer for the import of 500,000 metric tons of wheat at US$ 439.40 per metric ton.

The ECC meeting presided over by Finance Minister Miftah Ismail was presented a summary by the Ministry of National Food Security and Research on Tuesday to award the second international wheat tender 2022 opened on 1st July 2022 for 500,000 metric tons.

The ECC considering the lower trend of wheat in the international market has approved the lowest bid offer of M/s Cargill Int. PTE/ Cargill Agro Foods Pakistan @ US$ 439.40 per metric ton for 110,000 metric tons with five percent more of less seller’s options (MOLSO) to the extent of 500,000 metric tons.

Informed sources told Business Recorder that the Ministry of National Food Security in the summary said that a letter by the Trading Corporation of Pakistan (TCP) was received in the Ministry of Commerce relating to the tender for 500,000 metric tons of imported wheat.

Sources further stated that the tender issued in June 2022 in the shipment window between August 2022 to 15 September 2022 for the quantity of 500,000 metric tons was opened on 01-07-2022, wherein, of the total 10 international suppliers, eight offered rates and two have submitted regret letters.

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The bid evaluation committee of the TCP after evaluating the bids found that the lowest responsive bid was from M/s Cargill International PTE/Cargill Agro Foods Pakistan at US$ 439.40 per metric ton for 110,000 metric tons plus five percent more of less seller options (MOSLO) and the bid remains valid till July 5, 2022.

The ECC was further informed that the TCP in the 1st tender ensured the import of 500,000 metric tons of wheat at the lowest bid offer of US$ 515.49 metric tons in the shipment window of July to August 2022.

The ECC was informed that the present offered rate US$ 439.40 per metric ton is less to the tune of US$ 76.09 per metric ton than the previous awarded tender quantity; therefore, in view of the above, considering the lower trend of wheat in the international market, the Ministry of National Food has recommended approving the lowest bid offer of Cargill Agro Foods Pakistan @ US$ 439.40/ MT for 110,000 metric tons with five more of less five percent.

The matching quantity restricted to the extent of 500,000 MT of imported specified wheat MOLSO may be allowed to be procured after negotiation with the participating bidders.

Copyright Business Recorder, 2022