Pakistan tenders for import of 50,000 tonnes wheat
Bids from pre-qualified foreign suppliers will be received by Oct. 29 and opened the same day.
By PTI |
ISLAMABAD: The state-run Trading Corporation of Pakistan (TCP) has issued a tender to import 50,000 tonnes of wheat to be supplied in bulk. Bids from pre-qualified foreign suppliers will be received by Oct. 29 and opened the same day, the corporation document said on its web site, seen on Saturday.
The government decided on Sept.15 to import 1 million tonnes of wheat to maintain buffer stocks following rising domestic prices of wheat and wheat flour despite a bumper crop. This was the second Pakistani tender since that decision, after the TCP bought 50,000 tonnes of milling wheat at $445 per tonne at a tender early this week.
Finance Ministry official Ashfaque Hasan Khan said on Thursday only two companies offered bids for the tender made on Sept. 25, but gave no details except that the purchased wheat was of Russian origin. Following a weak response from the pre-qualified parties to the first tender, TCP has invited more international foreign wheat suppliers to get themselves pre-qualified, and they must submit applications by Oct. 24, according to the TCP.
Pakistan last month cut its wheat output estimate in the 2006/07 crop year to 23.3 million tonnes from an earlier estimate of 23.5 million tonnes. Output in 2005/06 was 21.7 million tonnes. In January, expecting a bumper crop, Pakistan lifted a two and half year ban on wheat exports, imposed to protect domestic supplies, and allowed private traders to export 1.3 million tonnes.
The ban was re-imposed in May after a surge in domestic prices, but not before traders had exported about 366,000 tonnes from the sanctioned quantity. Officials say the country has enough wheat to meet domestic requirements, estimated at 22 million tonnes a year, and the import of 1 million tonnes of wheat will help meet needs until the new crop starts arriving in mid-February.
The government decided on Sept.15 to import 1 million tonnes of wheat to maintain buffer stocks following rising domestic prices of wheat and wheat flour despite a bumper crop. This was the second Pakistani tender since that decision, after the TCP bought 50,000 tonnes of milling wheat at $445 per tonne at a tender early this week.
Finance Ministry official Ashfaque Hasan Khan said on Thursday only two companies offered bids for the tender made on Sept. 25, but gave no details except that the purchased wheat was of Russian origin. Following a weak response from the pre-qualified parties to the first tender, TCP has invited more international foreign wheat suppliers to get themselves pre-qualified, and they must submit applications by Oct. 24, according to the TCP.
Pakistan last month cut its wheat output estimate in the 2006/07 crop year to 23.3 million tonnes from an earlier estimate of 23.5 million tonnes. Output in 2005/06 was 21.7 million tonnes. In January, expecting a bumper crop, Pakistan lifted a two and half year ban on wheat exports, imposed to protect domestic supplies, and allowed private traders to export 1.3 million tonnes.
The ban was re-imposed in May after a surge in domestic prices, but not before traders had exported about 366,000 tonnes from the sanctioned quantity. Officials say the country has enough wheat to meet domestic requirements, estimated at 22 million tonnes a year, and the import of 1 million tonnes of wheat will help meet needs until the new crop starts arriving in mid-February.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
