Trading Corporation of Pakistan (TCP) on Tuesday finalised sugar procurement deal with the lowest bidder for a quantity of 5,000 metric tons at Rs 53, 600 per ton, while 34 bidders have been asked for price matching in order to procure targeted quantity.
Last month, the Economic Co-ordination Committee (ECC) of the Cabinet directed state run organisation to procure 100,000 tons of sugar form domestic mills to ease their financial issues. Following the ECC directives, the TCP decided to make this procurement in two phases, first sugar tender was issued on September 18, 2013 for the procurement of 50,000 tons of sugar.
In response to the TCP’s tender, opened on October 2, 2013, some 36 parties participated and quoted prices ranging from Rs 53,600 per ton (including taxes) to Rs 57,500 per ton (including taxes). All bids were for different quantities and overall mills put some 165,000 tons of sugar on sale as against the tender quantity of 50,000 tons. The lowest bid was submitted by the M/s Army Welfare Trust, which agreed to sale some 5,000 tons of sugar at Rs 53,600 per ton (including taxes) While, highest bid was submitted by two bidders namely M/s Tandoaalla Yar Sugar Mills and Mehran Sugar Mills.
After detailed analysis and evaluation of the bids it was found that out of 36 bids one appeared non-responsive as its quoted price was excluding tax. The TCP’s bid evaluation committee met on Tuesday and accepted the lowest bid as it was in confirmation with all the tender terms and conditions. Accordingly, Army Welfare Trust was awarded the contract for procurement of 5,000 tons of sugar at Rs 53, 600 per ton.
Meanwhile, in order to complete the remaining procurement of 45,000 tons, TCP has offered rest of the 34 bidders, who quoted higher rates, for matching with the lowest bid price by today (Wednesday) till 4pm The ECC has already allowed price matching to complete the procurement.
TCP will finalise deal with all those mills, which will agree to supply sugar at price of Rs 53, 600 per ton (inclusive taxes). However, TCP will apply pro rata formula, if offered quantity was higher than the target. Procured sugar will remain in the godowns of the mills and would be directly supplied to the Utility Stores Corporation (USC).
TCP floated another sugar procurement tender on October 3, 2013 for procurement of 50,000 tons of sugar from domestic mills. As per tender terms & conditions, bidders are required to quote bids for a minimum quantity of 2,000 metric ton and maximum 5,000 metric tons and prices are inclusive taxes. It may be mentioned here that from the last two years, TCP is procuring sugar from domestic mills. During this season TCP has procured some 427,000 tons of sugar from mills, while about 100,000 tons will be procured during next one month.