No Bids For Pakistan’s Unattractive Wheat Tender Terms
European traders have reportedly refrained from submitting price offers in response to Pakistan’s tender for the purchase of 110,000 metric tons of wheat on Wednesday, as per Reuters. The initial evaluations indicate that traders found the terms of the tender unattractive, specifically highlighting concerns about the need for a bid bond equivalent to 2 percent of the offer value and a 5 percent performance bond based on the contract value.
Traders have expressed that despite a strong interest from private buyers in Pakistan for wheat, the specified terms acted as a deterrent. Some traders argued that such conditions are unnecessary to fulfill the demand from Pakistani buyers.
Issued by the Trading Corporation of Pakistan (TCP), the tender outlined the requirement for shipment in consignments of at least 50,000 tons in two periods, spanning from January 10 to January 15 and January 17 to January 22. The specified arrival date in Pakistan was set for February 12, 2024.
It’s essential to note that these insights are based on assessments from traders, and additional information may emerge in subsequent reports.
Despite reports indicating a bumper wheat production of 28 million tons, Pakistan is grappling with a 3 million tons wheat shortfall. To address this, the government has authorized both the public and private sectors to mitigate the shortfall and control the surging flour prices.