As the Trading Corporation of Pakistan (TCP) on Wednesday requested bids for import under the second such tender for supply of wheat in less than a month, Pakistan may be able to obtain a more reasonable wheat price in a new attempt to buy 0.5 million tonnes of grains.
Commodity cargoes are expected to arrive between August and September 15, 2022.
To the official document, TCP, a state-owned organization operating under the administrative supervision of the federal ministry of Commerce, floated a tender to solicit bids from the international wheat suppliers for the supply of 500,000 tonnes of wheat in bulk on a CFR Karachi basis, either directly or through their local offices or representatives around the world.
Between August and September 15, wheat imports are to be undertaken. Grain prices have somewhat decreased in recent weeks on the global market, making it possible to find wheat at a lower price.
On the other hand, in a previous attempt on May 25, TCP was provided with a price for purchasing 500,000 tonnes of wheat that were nearly twice as high as the local price. The nation received a bid of $515 per tonne, including Cost & Freight (C&F), for 500,000 tonnes of wheat in response to a global tender requested by TCP on May 17.
Following the Russia-Ukraine war, grain prices have risen by a record amount on the global market. The country’s domestic market began to be impacted by the rising price of wheat on the international market. The nation must import grain to make up the shortfall of nearly three million tonnes of wheat this year compared to annual demand.
The price of the wheat, however, was too exorbitant. Now, according to market experts, Pakistan should be able to purchase wheat under the second tender for between $470 and $490 a tonne.
It is important to note that the official price of Rs2,200 for 40 kg of wheat surged to over Rs2,800. Comparatively, a kilogram of grain costs Rs 70 on the local market, whereas the first consignment of imported wheat will cost consumers about Rs 104 per kilogram.
Wheat must be supplied precisely in compliance with the required standards, specifications, and Import Policy Order, according to the tender document for new bids. According to the shipment plan, the entire amount of wheat must arrive at the designated ports in Pakistan.
The proposals must be dropped by July 1, 2022, at the latest by 10:30 a.m. PST. On the same day, at 1100 hours, bids will be opened in front of the bidders or their authorized agents.
Milling wheat from the most recent crop must be dried and have mature grains with typical size, color, and form. Except as specified in the specification, it must be clean, healthy, and free of offensive smell, discoloration, and mixing of harmful materials, including toxic weed seed, and other contaminants. It must comply with IPPC and DPP Pakistan import regulations and be free of any quarantine pests, illnesses, and living insects.
The bidders may submit their offers to the following requirements of the Ministry of National Food Security & Research, together with the technical specifications of their wheat.
Pakistan will need to import 3.0 million tonnes of wheat during the marketing year 2022–2023 to make up for production shortfalls, avoid shortages, and control price increases.
Out of this amount, the Cabinet’s Economic Coordination Committee (ECC) resolved last month to import two million tonnes of wheat on a government-to-government (G2G) basis and one million tonnes through an international tendering process.