Trading Corporation of Pakistan (TCP) has awarded the sugar purchase contract to the lowest bidder – M/s Adam Sugar Mills for a quantity of 5,000 tons at Rs 48,150 per ton. Sources told Business Recorder Wednesday that in response to the TCP”s price matching offer, some 33 other bidders/mills are also agree to supply cumulative a quantity of 143,700 tons of sugar at the same price.
Following the directives of the Economic Co-ordination Committee (ECC) of the Cabinet, the state-run grain trader, on July 3, 2013 issued sugar procurement tender and invited bids for purchase of 50,000 tons of sugar from local mills. Accordingly, the tender was opened on July 18, 2013 and as many as 58 parties expressed interest in selling sugar stocks to government owned grain trader. As per the tender”s terms and conditions, the bidders were required to quote bids for a minimum quantity of 2,000 tons and maximum 5,000 tons.
The lowest offered price was Rs 48,150 per ton and highest Rs 60,000 per ton. Lowest bid was offered by M/s Adam Sugar Mills for the supply of 5,000 tons of sugar. As the lowest bid was as per the tender”s term and conditions, TCP accepted the bid of Adam Sugar Mills and accordingly letter of acceptance was issued to the first lowest bidder for purchase of 5,000 tons of sugar.
Meanwhile, TCP also offered other bidders/mills to match the lowest price as the ECC had already allowed price matching to complete the procurement. In response to TCP”s offer, out of remaining 57 bidders, some 33 have shown interest in supplying a cumulative quantity of 143,700 tons at Rs 48,150 per ton. The TCP will take a final decision on offer of these parties in next few days as the received bids are valid for next 15 working days, quite enough a time for TCP to finalise the sugar procurement with suitable bidder.
Sources said as the tender was only for a quantity of 50,000 tons of sugar procurement and mills have agreed to supply 143,700 tons of sugar, it is being expected that as per past practices, TCP will procure sugar on prorate basis. Overall TCP will procure some 100,000 tons of sugar from domestic mills and another tender for the purchase of 50,000 tons of sugar from domestic mills has also been issued by TCP with opening date of August 2, 2013. Sources said the procured sugar will be supplied to the Utility Stores Corporation (USC) and presently TCP has some 56,000 tons of unallocated sugar stocks in its godowns.
