58 mills agree to sell sugar to TCP
Some 58 sugar mills have expressed willingness to sell the commodity to the Trading Corporation of Pakistan (TCP). Following the directives of federal government, on July 3, 2013, TCP floated a tender for purchase of 50,000 tons of sugar from local mills as they are facing some financial issues following slow sales in the domestic market.
Accordingly, the tender was opened on Thursday and as many as 58 parties shown interest in selling sugar to government owned grain trader. As per the tender terms and conditions, the bidders were required to quote bids for a minimum quantity of 2,000 tons and maximum 5,000 tons.
All 58 mills have offered bids for different quantities and rates ranging from Rs 48,150 to Rs 60,000 per ton. However, so far no bid is accepted as the evaluation process of received bids is under process, after which, the price evaluation committee/tender award committee will review the quoted prices and finalise the deal. Sources said the received bids are valid for 15 working days and it”s enough for TCP to finalise the sugar procurement with suitable bidder.
The Economic Co-ordination Committee (ECC) of the Cabinet has already allowed TCP to apply price matching formula on sugar procurement tender, therefore it is likely that the price evaluation committee will offer other bidders to match the lowest price. Sources said overall TCP will procure some 100,000 tons of sugar from domestic mills and the second tender for the purchase of 50,000 tons of sugar from domestic mills has also been issued with opening date of August 2, 2013. Courtesy Business Recorder