HAMBURG: Pakistan’s tender to buy 300,000 tonnes of wheat closed on Monday with the lowest offer believed to be $398.92 a tonne c&f, European traders said in initial assessments.
Only one trading house, Agrocorp, was believed to have submitted offers.
The state agency, the Trading Corporation of Pakistan (TCP), is still considering the offers and no purchase has been reported, traders said.
Pakistan unexpectedly added another term to its tender, including a requirement for an extra quality inspection on wheat arrival and unloading in Pakistan, traders said. This would be in in addition to the usual quality inspection at the port of loading.
"This caused a lot of uncertainty, raising the prospects of cargoes being rejected, and for me this is why the participation was so low," one grain trader said.
Agrocrop offered the $398.92 a tonne c&f for 115,000 tonnes of wheat for shipment to the port of Karachi and $409.92 a tonne c&f for 100,000 tonnes for shipment to Gawadar port, traders said.
Uncertainly about the changed tender terms was a reason for low participation, traders said.
Rapid wheat shipment is sought in October and offers had to be for at least 100,000 tonnes.
The tender was issued after massive flooding in Pakistan damaged farmland and crops, sweeping away homes, bridges, roads and livestock, causing an estimated $30 billion of damage.