TCP invites bids for import of 0.3m tons of sugar
In order to stabilise the rising prices of the commodity and avoid shortage on the domestic market, the federal government has decided to import 0.5 million metric tons of sugar.
The Federal Board of Revenue (FBR) has already exempted customs duty on the import of 0.5 million tons sugar and also reduced sales tax rate from 18 percent to 0.25 percent and withholding tax up to 0.25 percent on the import of commodity by the TCP or private sector.
Following the export of sugar during the last fiscal year, domestic sugar prices have been on the rise, reaching up to Rs 180 per kilogram compared to less than Rs 140 per kilogram at the time of export. In response to this sharp increase and to stabilize the local market, the government has decided to import sugar.
Accordingly, on the directives of the government, state run grain trader has issued an international tender and invited sealed bids from the international white refined sugar suppliers/manufacturers, directly or through their local offices or representatives having capacity to supply 'White Refined Sugar' through worldwide sources, for supply of 300,000 metric tons (+/-5% More Or Less Seller's Option) of white refined sugar (bagged cargo) on CFR Karachi and/or Gwadar basis (in break bulk) including 50,000 metric tons of white refined sugar (bagged cargo) on delivered at place unloaded (TCP Pipri Godown) basis in containers only.
The bids, prepared in accordance with the instructions in the tender documents, must be dropped on or before July 18, 2025, latest by 1130 hours. Bids will be opened on the same day at 1200 hours in the TCP's Board Room, in presence of the bidders or their authorized representatives who may wish to be present.
As per tender, bids must be made for minimum 25,000 metric tons (+/- 5 percent MOLSO) on CFR Karachi and less than 25,000 metric tons for CFR (Break Bulk) and/or DPU (Containerized) will not be accepted.
The validity of bids must for Eighty (80) hours from submission of bids and total quantity of white refined sugar must reach the designated ports/destination in Pakistan in accordance with the shipment schedule given in the Tender Document.
However, TCP has made it clear that the interested parties who have previously not fulfilled their contractual obligations with TCP shall not be eligible to participate in the bids, unless they clear their dues along with penalties or fulfil their contractual obligations in services and commodities with TCP, as the case may be, before tender opening date.
Furthermore, those firms against which blacklisting procedures have been initiated by TCP shall not be eligible to participate in the tender.
The supply/import of white refined sugar will be governed by the Imports and Exports (Control) Act, 1950, provisions of the Trade Policy in force, PPRA Rules 2004 and the orders/notifications issued there under; and shall be in accordance with the requirements/specifications laid down by Pakistan Standards Quality Control Authority (PSQCA), for imported white refined sugar.
Successful bidder shall be required to furnish a Performance Guarantee, for due and satisfactory performance of the contract, equal to five percent (5%) of the value of the contracted goods (including +5% of MOLSO) within five (05) working days from award of contract, in the form of a Bank Guarantee in US Dollars from a minimum 'A' rated (PACRA/VIS) Bank in Pakistan or in the form of a Banker's Cheque in PKR (Equivalent to US dollars at the exchange rate on or a day preceding the date of opening of the tender.
Copyright Business Recorder, 2025
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