Pakistan. TCP scraps rice tender

15.08.2016

Trading Corporation of Pakistan (TCP) scrapped rice procurement tender for China, as the successful bidder agreed for conditional supply. State-run grain trader finalised a deal for procurement of 10,000 tons of Long Grain White Rice (Irri-6) for China on August 11, and accordingly the contract was awarded to lowest bidder namely M/s Chappal Traders at Rs 41,392/-per metric tons on Cost Insurance and Freight (CIF) basis as its bid was response and competitive.

The rice was being procured for China''s flood-hit masses as a gift from the people of Pakistan.

However, the successful bidder, after getting contract award letter imposed some conditions for supply of Long Grain White Rice (Irri-6). According to TCP officials, despite submitting bid for supply of 10,000 tons rice, the M/s Chappal Traders refused to supply complete quantity and agreed only for supply of 5,000 tons of rice.

Secondly, the successful bidder asked TCP not to procure remaining quantity (5,000 tons) above the price that it has quoted in the tender and thirdly, it was seeking additional time for the supply of rice. The bidder was seeking about 30 days excluding Saturday and Sunday for supply of rice, they added.

In this situation, the state-run grain trader decided to scrap first rice tender for China and accordingly issued a fresh tender for procurement of rice. Fresh bids have been invited under the Rule 42(c)(v) of the Public Procurement Rules 2004 as the government has declared emergency for the instant procurement and TCP is making efforts to ensure shipment in first week of September 2016.

Sources said that the TCP is also considering action against the first lowest bidder as it has regretted after the issuance of contract award letter.

The second rice tender for China will be opened on Monday August 15, 2016 for procurement of 10,000 tons rice. However, as the Long Grain White Rice (Irri-6) is short in the market, the TCP has asked for procurement of Long Grain White Rice (PK-386).

State-run grain trader has invited sealed bids (under Public Procurement Rules, 2004) on CIF basis from companies/partnership/sole proprietors dealing in exports of rice for export of 10,000 metric tons Long Grain White Rice (PK-386) to China in shape of containerised bagged cargo packed in 50-kg polypropylene (PP) woven bags as per specification provided by TCP.

However, the companies that are blacklisted by any government department/ agency or have defaulted with TCP or failed to perform their contractual obligations with TCP will not be eligible to participate in the tender unless they clear their dues along-with applicable penalties or fulfil their contractual obligations with TCP, as the case may be, before tender opening date.

As per tender tern and conditions, the bids will be submitted by a bidder for a minimum quantity of 2,000 per metric tons or multiples therefore with a maximum quantity of 10,000 metric tons Long Grain White Rice (PK-386). Previously, in the first tender minimum quantity for the submission of bid was 5,000 metric ton.

It is expecting that Long Grain White Rice (PK-386) may be 5 to 10 percent costly as compared to Long Grain White Rice (Irri-6). It may be mentioned here that the TCP opened the first rice tender for China tender on Wednesday August 9, and received poor response as only three parties participated in the bidding process. In response to TCP''s rice import tender some three companies/traders submitted their offers and quoted price ranging between Rs 41,392 per metric ton to Rs 44,920 per metric tons for the supply of Irri-6 rice.

The M/s Chappal Traders was the lowest bidder, which offered to supply 10,000 tons Irri-6 rice at a price of Rs 41,392 per metric ton on CIF basis.

M/s Garib Sons offered to supply 10,000 tons of Irri-6 rice at Rs 44,625 per metric ton. The third bidder M/s BABA Enterprises quoted Rs 44,920 per metric ton for 5,000 tons rice.

After bid evaluation, first lowest bid was declared responsive and accordingly TCP awarded contract to M/s Chappal Traders for supply of Irri-6 rice to China.

 


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