KARACHI, Aug 21: The Trading Corporation of Pakistan on Wednesday awarded export contract of wheat to the highest bidder at $113.69 per ton fob Karachi for shipment within 45 days from the date of acceptance of LC, TCP sources said.

The corporation had invited bids for export of 50,000 tons of “Pak-Punjab Supreme” wheat of 2002 crop and fixed tender opening date on Wednesday, August 21.

In total six bids were received, but one of the bidders at the last moment regretted. The highest bidder has asked for a quantity of 30,600 tons wheat for export, the sources said.

In order to encourage competition between exporters, the TCP for the first time did not refer the bid offers to the price evaluation committee and instead the corporation’s executive committee has taken the decision.

The sources said that change in the modus operandi of the TCP was just to remove the psyche of participants, who had started living on ‘matching offers’ given by the corporation rather than taking active part and were making independent price offers in their bids.

The second highest price for export of 15,000 tons was $109.70 per ton, but the bidder has given his counter conditions to the TCP, the sources added. However, the corporation has asked the bidder to raise the offer to $113.69 per ton and also follow the terms and conditions laid down by the TCP in its tender document.

The corporation also received two bids at $108.00 per ton which proved to be third highest offers, while fifth best bid was made at $105.55 per ton.

According to TCP terms and conditions, the qualifying bidders would have to open LCs within ten days of acceptance of his bid and the shipment had to be made in 45 days i.e. Sept-Oct 2002.

Meanwhile, the highest bidder at $108.17 per ton in the tender for export of 100,000 tons of “Pak-Punjab” wheat crop 2002, has rejected the TCP’s request to withdraw his counter conditions. The corporation had asked the bidder to accept the TCP’s tender document conditions and finalize the deal, but the same was rejected.

Moreover, the second and third highest bidders also gave counter conditions which are not acceptable to the TCP.

Nevertheless, four bidders, who quoted a price at $105.50 per ton, have accepted the TCP’s offer to match their bid prices to $108.17 per ton. This would mean that each bidder will get 25,000 tons of wheat.

As a result of this, the TCP will manage to arrange export of around 175,000 tons of wheat within next two months because presently a last vessel of 31,000 tons wheat meant for Iraq is being loaded and is expected to leave in next three to four days.

The TCP last year received a contract for export of 100,000 tons of wheat to Baghdad under the UN oil-for-food programme. However, Iraq rejected two ship load of 31,000 tons each and agreed for their replacement. The TCP has already shipped 31,000 tons of wheat which was accepted by Baghdad and this is the second vessel which has to reach Iraqi port before Sept 8, 2002, as per the agreement.