ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved import of 580,000 MT wheat to meet local requirements in two different international tenders.
Minister for Finance and Revenue Senator Mohammad Ishaq Dar chaired the meeting of the ECC of the Cabinet. Sources said that the Ministry of National Food Security and Research submitted a summary on the Award of 7th International Wheat Tender 2022 opened on 30th November, 2022.
Trading Corporation of Pakistan dated November 11, 2022 seeking advice on the 7th international wheat tender opened on 30/11/2022 for the import of 500,000 MT of wheat (5% MOLSO).
TCP issued 7th tender on 18/11/2022 on CFR basis at Karachi ports and Gwadar port for the shipments from December 16, 2022 to February 8, 2023. The tender was opened on 30/11/2022 wherein 10 international bidders participated, out of nine bidders offered rates and one submitted regret.
Sources said that the lowest responsive bids on CFR bulk basis for Karachi ports is from M/s Cereal Crop Trading LLC @$372/MT for supply of 130,000 MT (MOLSO) and for Gwadar port is from M/s Grainflower DMCC @$377/MT for supply of 105,000 MT (MOLSO) wheat and validity of bids is till December 5, 2022.
The estimated cost of imported wheat as calculated by TCP for Karachi port is @ Rs91,121 MT or Rs3645/40kg whereas cost at Gwadar port is estimated @91,623 MT or Rs3685/40 kg as provided under PPRA exemptions for the subject imports and in order to complete tendered quantity, the matching process was finalized by the TCP.
Offer from M/s Cereal Crops Trading LLC for 130,000 MT, M/s Agrocrop International for 120,000 MT and M/s Aston FFI DMMC for additional 190,000 MT wheat have been received to award the tendered quantity of 500,000 MT.
Sources said that TCP has also revised offer from M/s Prodintorg Russia on G2G basis @$372MT for supply of 450,000 MT on CFR bulk at Gwadar or Karachi ports for the shipment period from February 1, 2023 to March 31, 2023 and the validity of offer is still December 5, 2022.
It is pertinent to note that against the total allocation of 2.6MMT of imported wheat allowed by the cabinet, 980,152 MT has already arrived whereas TCP has awarded tenders for 685,000 MT. therefore with the current tender quantity of 500,000 MT and offer under G2G for 450,000 MT, the entire allocation of imported wheat of 2.60 MMT would be completed.
As per the handout issued by Finance division that Keeping in view results of 7th International tender and G2G offer, the ECC approved the lowest bid from M/s Cereal Crop Trading LLC @ US$ 372/MT for supply of 130,000 MT at Karachi ports for the shipment period from 16th December, 2022 to 8th February, 2023 and also granted approval of the offer of M/s Prodintorg , Russia on G2G basis @US$ 372 /MT for supply of 450,000 MT at Gwadar Port for shipment period from 1st February, 2023 to 31st March, 2023.
It was decided that any additional cost on inland transportation from Gwadar Port will be borne by PASSCO to be recovered from provinces at the time of release of wheat stock.
The ECC also approved a proposal of the Finance Ministry to change the title of the revolving fund account for CPEC Independent Power Producers from “Pakistan Energy Revolving Fund” to “Pakistan Energy Revolving Account”.
