TCP scraps rice procurement tender

Trading Corporation of Pakistan (TCP) scrapped rice procurement tender, as the quoted prices weresignificantly higher than the prevailing local prices.Following the directives of the federal government,TCP invited bids for purchase of 15,000 tons of Long Grain White Rice (IRRI-6) for "Benin" as gift from people of Pakistan.Some seven bidders submitted their bids price ranging Rs 46,770 per metric ton to Rs 48,000 per metric tons for the supply of IRRI-6 rice. Out of seven bids, one bid found nonresponsive as its bidsecurity was short.Later, a meeting of the TCP''s Tender Award Committee was held on January 25, 2016 at TCP office to consider the received bids.The representative of Transparency International Pakistan and Rice Exporters Association of Pakistan (REAP) and Federation Pakistan Chamberof Commerce and Industry were also invited as observers to witness the proceedings of Tender Award Committee. However, the representative of REAP did not attend the meeting.The Tender Award Committee noted that as per theBid Evaluation Report the lowest responsive bidder is M/s. Meskay & Famtee Private Limited as it has quoted the price of Rs 46,770/- per metric ton on Cost Insurance and Freight basis.The Committee noted that the prices of Long Grain White Rice IRRI-6 (5 percent broken) have shown an upward trend over the last one month, especially during the last few days and the demand emanating from China has resulted in hike in prices of Rice in the local market.However, it also observed that notwithstanding the recent upsurge in the prices of IRRI-6 Rice, the lowest bid of Rs 46,770/- per metric ton on CIF basis was significantly higher than the prevailing market prices of approximately 340 to 345 dollar per metric ton on FOB basis.The Tender Award committee observed that since the price quoted by the lowest evaluated bidder was not economical and was significantly higher than the prevailing local prices.Therefore, accepting the bid would not be in the interest of the government.The Committee, therefore, decided to scrap the tender.Meanwhile, the TCP has invited fresh sealed bids (under Public Procurement Rules, 2004) from companies/ partnership/ sole proprieties dealing in export of rice for purchase of 15,000 tons long grain white rice (IRRI-6) on Cost and Free on Board(C&FoB) basis upto the port of Cotonou, Benin, packed in polypropylene (PP) woven bags as per provided specification.The fresh tender will be opened on February 3, 2016. As per tender documents, a party can submit a bid for minimum quantity of 7,500 tons or multiple therefore with maximum quantity of 15,000 tons.News SourceNews Collated byPAKISSAN.comCourtesy Business Recorder