Rice export to China: 7 bidders submit offers

16.08.2016

In response to Trading Corporation of Pakistan''s (TCP) rice procurement tender for China, some 7 bidders have submitted offers ranging from Rs 46,692 to Rs 56,950 per metric ton. The TCP floated the second tender on August 12, 2015, for purchase of 10,000 tons of Long Grain White Rice (PK-386) in containerised bagged shipment on Cost Insurance and Freight (CIF) basis. The tender was issued under the Rule 42(c)(v) of the Public Procurement Rules 2004 with opening date of August 15, 2016, as the government has declared emergency for the instant procurement.

Accordingly, the tender was opened on Monday at TCP head office and as many as seven companies shown their interest to supply Long Grain White Rice (PK-386) to the government-owned grain trader for export to China as a gift. As per the tender terms & conditions, the bidders were required to quote bids for a minimum quantity of 2,000 metric tons and maximum quantity of 10,000 metric tons, however not a single bidder submitted bid for the entire quantity.

All suppliers have offered bids for different quantities and rates ranging from Rs 46,692 per metric ton to Rs 56,950 per metric ton. Lowest bid was received from M/s Chappal Trader, which agreed to supply 3,500 tons of Long Grain White Rice (PK-386) at Rs 46,692 per metric ton. However, the lowest bidder has not deposited one percent bid security along with the bid.

Second lowest bid was submitted by M/s Meskey & Femtee Trading for supply of 2,000 tons of rice (PK-386) at Rs 47,992 per metric ton. M/s KK Rice offered to supply 2,000 tons of rice at Rs 48,900 per metric tons and M/s Baba Enterprise Rs 49,390 per metric ton for 2,000 tons.

M/s Garib Sons submitted three bids ranging from Rs 47,950 to Rs 49,950 per metric ton for cumulative supply of 6,000 tons of rice. M/s Meskey & Femtee Pvt Ltd''s bid was Rs 49,590 per ton for 5,000 tons of rice and the highest bid was received from M/s Metco as it quoted Rs 56,950 per metric ton for supply of 2,000 tons of rice. As the bid evaluation was not completed on Monday, therefore, TCP has not taken any decision on the tender. The bid award committee is likely to finalise deal today (Tuesday) after the bid evaluation. The state-run grain trader scrapped first rice procurement tender for China as the successful bidder imposed some conditions for supply of rice (Irri-6).

TCP finalised first deal with M/s Chappal Traders for supply of 10,000 tons of Long Grain White Rice (Irri-6) for China on August 11 at Rs 41,392 per metric ton on CIF basis as its bid was responsive and competitive. However, after getting contract award letter, the lowest bidder imposed some conditions for supply of Irri-6 rice. Despite submitting the bid for supply of 10,000 tons of rice, M/s Chappal Traders refused to supply complete quantity and agreed only for supply of 5,000 tons of rice. Therefore, the TCP decided to scrap first rice tender for China and issued a fresh tender for procurement of rice on Friday. The TCP is also considering action against the first lowest bidder as it offered regrets after the issuance of the contract award letter.


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