Ministries of Commerce and Minfa, sources said, had proposed that Allauddin & Company, of Quetta, should be awarded the tender. The company had offered the highest bid in Pak-Rupees equivalent to $227.50 per ton, subject to adjustment of wastage/processing loss, to re-export within 60 days and had already obtained 5 percent bank guarantee equivalent to the sale price.
TCP had invited bids on September 9, 2009 for sale of 100,000 tons of imported wheat. The tender was opened on September 26, 2009 and only five parties participated in the tender. The participants were required to submit the bid bond and bid in dollars as per tender terms but only one bidder/party furnished bid in dollars (ie Sunny Trading Co, Dharki) which offered $226.15 per ton.
However, the offer of Sunny Trading Co, was less than the offer of Allauddin & Co Quetta ($227.50). Sources said that Commerce Ministry sensed that any product, local or imported, cannot be sold in the local market in foreign currency. To reach any final decision, the Ministry sought comments from SBP, Minfa and FBR.
Commerce Ministry had proposed that to either (i) allow sale through tenders against Pak rupees (reserve equivalent to last year's issue price ie Rs 750/40 kg with the major part of the stock with no restriction on exports); or (ii) sale obtain bank guarantee equivalent to 5 percent of the sale price to be released only if wheat products of quality equivalent to purchased wheat, albeit subject to adjustment of wastage/processing loss, are exported within 60 days.
The Ministry was of the considered opinion that the tender for sale of imported wheat should be awarded in rupees. However, in this context the Ministry sought views from Minfa , FBR and SBP. The SBP endorsed this, saying that TCP should follow any mode for disposal of imported wheat. However, if it is disposed of locally, it should be rupees. SBP left the pricing issue to the Commerce Ministry.
Minfa stated that if imported wheat is being disposed of in the local market, bank guarantee equivalent to 5 percent of the sale price must be released only if wheat products of quality equivalent to purchased wheat, albeit subject to adjustment of wastage/processing loss, are exported within 60 days. FBR was of the view that it was not consulted at the time of wheat import; and does not have the mandate to meddle in the matter where no revenue implications are involved as laid down in the Rules of Business 1973.
After receiving comments from the stakeholders, Commerce Ministry, sources said, forwarded two proposals which are as follows: (i) cancellation of the subject tender No DOD/W-Auction/7-6/2009, dated 26-9-2009 and TCP may float another tender in the widely circulated newspapers in Pak rupees, so that maximum individuals /forms /organisations/companies may take part in the bid proceeding; or (ii) Ministry may support the highest bidder Allauddin & Company, Quetta, as it offered the highest bid in rupees ie $227.50 per ton subject to the adjustment of wastage/processing loss, and re-export it within 60 days, as well as obtain 5 percent bank guarantee equivalent to the sale price.