KARACHI, Dec 16: Trading Corporation of Pakistan (TCP) on Monday received the highest bid price of $133.38 per ton for export of “Pakpunjab” wheat quality of 2002 crop against its benchmark price of $130 per ton.

The bid, offered by Peter Cremer of Singapore, is the highest ever price the Pakistani wheat received through tender and could be seen as a trendsetter for future bid prices.

The state-owned corporation had invited offers from prospective exporters for 50,000 tons of “Pakpunjab” wheat of Punjab food department (crop 2002). The corporation had fixed a benchmark price of $130 per ton.

However, the highest bidder has established their bid for 31,000 tons, which according to TCP sources, would be awarded without calling a meeting of price evaluation committee.

In reply to a query, the sources said as the bid was over the fixed benchmark price, therefore, the question to evaluate the bid price did not arise.

According to the TCP’s public notice of December 1, 2002, the opening date for bids was fixed on Wednesday, Dec 11, 2002. However, the opening date was extended to Dec 16 on the request of prospective participants due to Eid holidays.

In total, seven bids were received by the TCP on Monday, which were opened in the presence of participants or their local representatives. However, five bids were technically up to the TCP’s tender conditions as the two others could not meet the conditions.

One of the bidders did not furnish bid bond and the other quoted a bid price which was much lower than the TCP’s benchmark price.

Though the second highest bidder Syndicate Trading, which offered bid price of $131.95 for a quantity of 25,000 tons, has indicated to match up with the highest bid price of $133.38, TCP sources said they would prefer to give first right of refusal to the highest bidder.

The third and fourth bid offers were of $131.77 and $130.75 per ton, respectively, while Delta International offered $130.10 per ton. Montfield Trading, Karachi, quoted a price of $115 and did not qualify for the bidding.

Meanwhile, Chicago grain market has quoted wheat price for December slightly lower at $3.45 per bushel from $3.47.

Analysts believe that world wheat prices may stay on higher side this season as leading wheat producing countries are likely to harvest lower wheat owing to draught and continuous dry spell.

The country is now well set to capture more world wheat markets which had been traditionally under the control of the West and Australia. With two years experience in wheat export a lot many areas have been improved upon, particularly in the standardization of wheat. In the past the country had been importing wheat to meet its domestic consumption gap.

However, a lot is yet to be done on the development of infrastructure for exporting clean and free of foreign elements wheat and this is only possible if silos are set up at port areas and mechanized cutting, thrashing and ship loading is carried out.