Pakistan gets offers in 300,000T wheat import tender

LAHORE: Wheat imports through private trading companies have finally started gaining momentum as Trading Corporation of Pakistan (TCP) issued bid evaluation report of a fresh tender for purchasing 300,000 tonnes grains.

As per assessment of public sector enterprise responsible for commodities business, M/S Vittera BV with bid price of $404.86 per tonne for Sight L/C basis and M/s Aston FFI DMCC with quoted price of $409.50/420 per tonne for 90 days deferred L/C have emerged as lowest evaluated bidders.

Other responsive bidders include Bunge SA with bid price of $418, Falconbridge FZ LLC with $419.49, Cargill International PTE with $422.60, Agrocorp International PTE with $434.92 and Olam International with bid price of $485.00 per tonne.

The bids were received in response to an international tender invited by TCP on July 7, 2022 for import of 300,000 tonnes wheat through worldwide sources on CFR Karachi basis through L/C and CFR Karachi basis through L/C at 90 days deferred payment. These shipments are to be made between August 1 and August 25, 2022.

No purchase has yet been reported and the offers are still being considered, the officials said.

Earlier on July 5, 2022, Ministry of National Food Security and Research submitted a summary in the meeting of the Economic Coordination Committee (ECC) seeking urgent advice relating to award of second international wheat tender 2022 opened on July 1, 2022 for import of 500,000 tonnes.

The ECC considering the lower trend of wheat in the international market approved the lowest bid offer of M/s Cargill Int PTE /Cargill Agro Foods Pakistan at $439.40/tonne for 110,000 tonnes +/- 5 percent MOLSO to the extent of 500,000 tonnes.

These grains were being imported under a plan approved by the federal government to buy one million tonnes of wheat from private parties through international competitive bidding.

Government has also decided to import another two million tonnes of wheat under a government-to-government deal with Russia.

However, there has been no concrete development on this crucial front yet.

Previous and incumbent governments expressed keenness over import of grains from Russia. Present government announced last month negotiation was underway with Russia to import wheat as the US and EU sanctions against Moscow were not applicable on food items.

Prime Minister Shehbaz Sharif on June 8, 2022 laid stress on importing wheat from Russia. During a discussion in a cabinet meeting, the prime minister emphasised that the import of wheat from Russia should be on a G2G basis.

Minister of State for Foreign Affairs Hina Rabbani Khar clarified that the US and EU sanctions were not applicable on food items and the talks with Russian authorities on wheat import were on a G2G basis.

Reportedly, later prospects were discussed at government level about wheat import deal being signed with Russia later this month.

Nevertheless, market insiders stressed the need to complete imports as soon as possible given the volatility in the market.

They also emphasised that government should particularly strike wheat import deal with the Russian government expeditiously if it really wanted to ensure food security and lower import bill significantly. Separately, to meet the requirement of neighbouring Afghanistan, Ministry of National Food Security and Research submitted a summary to ECC on WFP operation- purchase/ reservation of 120,000 tonnes wheat for Afghanistan in the year 2022-23.

In view of the situation in Afghanistan and on humanitarian ground, the ECC approved the request of the WFP for purchase/ reservation of 120,000 tonnes wheat from the imported wheat stock of PASSCO on the latest import price.

The amount of supplied wheat along with cost and incidentals would be charged in US dollars. The wheat would be locally grinded into wheat flour and supplied to Afghanistan by WFP, subject to relaxation of ban on the export of flour to the extent of the instant proposal of 120,000 tonnes wheat.