Some 57 domestic sugar mills have shown interest to offload their commodity stocks with state run grain trader. Trading Corporation of Pakistan (TCP) on Friday conducted sugar tender for procurement of 92,000 tons of sugar from domestic mills. In response to TCP tender, some 57 domestic mills have submitted their bids.
All mills have submitted bids for different quantities and rates ranging from Rs 49,499/ to Rs 55,000/ per metric ton (including taxes). Hamza Sugar Mill has submitted lowest bid of Rs 49,499 per ton (including taxes) for quantity of 5,000 tons. However, so far no bid has been accepted as the evaluation of received bids is under process, after which, the price evaluation / tender award committee will award the contract.
The Economic Co-ordination Committee (ECC) of the cabinet has already allowed price matching for sugar procurement tender, therefore, it is likely that after accepting the valid lowest bid, TCP’s price evaluation committee will offer other bidders to match the lowest price aimed to complete the procurement as per tender quantity. Sources said that received bids are valid for next 15 working days and there is enough time for TCP to finalise the sugar procurement with suitable bidders. As per tender terms & conditions, the bidders were required to quote bids for a minimum quantity of 2,000 tons and a maximum quantity of 5,000 metric tons.
“The price evaluation/tender award committee of TCP is likely to meet next week to review the bids and finalize the sugar procurement deal”, they added. Another tender for procurement of 40,000 tons sugar will be opened next week at TCP head office. Sources said that participation of 57 mills and lowest offer of Rs 49,499 per ton reflects that local mills have sufficient stock of commodity and are sincerely willing to offload with TCP to ease their financial problems.
