RIZWAN BHATTI

KARACHI: Following the directives of the Economic Coordination Committee, (ECC), Trading Corporation of Pakistan (TCP) has finalised deals for the import of 0.5 million tons of urea for Rabi season.

Sources told Business Recorder on Friday that under current import first shipment is expected to reach Pakistan by the end of this month or first week of December to avoid any shortage in the domestic market.

TCP conducted fifth urea import tender on Friday and tender was awarded to the lowest bidder at $354.67 per ton for the import of 100,000 tons.

In response of TCP’s fifth urea import tender, some 9 international pre-qualified suppliers participated in the tender. Out of 9, one participant namely M/s Swiss Singapore submitted regret letter, while remaining 8 quoted prices ranging $354.67 per ton to $366 per ton.

Lowest price was offered by M/s Dreymoor, which quoted a price of $354.67 per ton for 100,000 tons of urea, second lowest bidder was M/s Trammo with a price of $358per ton for supply of 75,000 tons of urea and with an optional quantity of 25,000 ton.

M/s Multi commerce agreed to supply 100,000 ton urea at $358.23 per ton, M/s Quantum Fertilizer offered to supply 85,000-95,000 tons urea at $358.45 per ton, M/s Agri Fertlizer SA quoted $358.93 for 100,000 tons urea and M/s Koch Fertilizer’s bid was $359.21 for 75,000 tons commodity.

In addition, M/s Liven Agichem submitted a bid price of $363.00 per ton for a quantity of 100,000 tons and M/s Indagro SA offered to supply 75,000 tons at $366 per ton.

TCP’s bid evaluation committee after detailed analysis decided to finalize deal with M/s Dreymoor as its bid was lowest and according to tender’s terms and conditions. Accordingly, TCP on Friday issued a contract award letter to the lowest bidder for the import of 100,000 tons of urea at $354.67 per ton.

Following the ECC directives, TCP in the first week of October issued multiple tenders for the import of 0.5 million tons of urea and last tender was conducted on Friday.

After this deal overall TCP has finalized deals for the import of 0.5 million tons as some four deals for the import of 0.4 million tons have already been finalized by state run grain trader to avoid any shortage in local market during the on going crop season.

Ahead of expected shortage, in the first week of October 2013 the federal government directed TCP to import 0.5 million tons of urea till December 2013. The fertilizer industry had already opposed the import of 0.5 million tons of urea for Rabi season against its proposal of 0.3 million tons.