The Trading Corporation of Pakistan (TCP) sugar procurement tender failed to attract even a single bid, reportedly, due to lower price and strict conditions. Following the directives of the Economic Co-ordination Committee (ECC) of the Cabinet, the state-run grain trader issued tender for purchase of 0.3 million tons of white sugar, on January 5, 2018, to ease the financial difficulties of sugar mills and ensure the procurement of sugarcane from growers at the prescribed rate.
In response to the TCP''s tender, not a single bid was submitted by millers. The tender was opened at 11:00 am on Jan 25, 2018 at the TCP head office, however till the prescribed time no bid was dropped in the tender box, placed at the TCP''s reception. "Yes, we have not received even a single bid and the tender has been scrapped," a TCP official confirmed to Business Recorder. The TCP will issue a fresh tender for sugar procurement, if the ministry of commerce directed, he added.
Sources said the chief reason behind non-submission of bids is low price and strict or unfavorable terms and conditions. As per the tender, the procurement price will be maximum Rs 48,000 per metric ton (Rs 48 per kg). The maximum price, relative to quality, was much lower than market price. The TCP asked for white sugar as per specifications/requirements prescribed by Pakistan Standards & Quality Control Authority (PSQCA). Price of Sugar''s Solution Colour ICUMSA Unit Max-60 is presently higher than Rs 50, they maintained.
In addition, as per the terms and conditions of the tender issued by TCP, mills will get payment of sugar in three phases. Forty (40) percent or first installment of payment of total value of procured commodity will be made on submission of required documents including commercial invoice and surveyor certificate. While, the second installment of 40 percent on submission of a certificate from the Provincial Cane Commissioner to ensure that the mill has cleared all the dues of sugarcane growers up to and including the Crop Year 2017-18 while the remaining 20 percent payment (final installment) will be released after completion of lifting of entire quantity.
In addition, the TCP asked for supply of sugar in 50 kg (net) poly lined translucent polypropylene (PP) woven bags of 160 grams, which is expensive and is a higher quality bag. Sources said the TCP also held a pre-bid meeting on January 18, 2018 to discuss the anomalies of the tender and the meeting was attended by some 10-12 representatives of a few sugar mills. The participants also raised various anomalies and after the meeting, the TCP made three changes including deleting of printing on the back side of bags and a maximum size of lots was reduced to 1,000 metric tons instead of 1,500 metric tons.
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