TCP signs agreement for urea import

KARACHI: The Trading Corporation of Pakistan (TCP) has signed a commercial agreement with Saudi Basic Industries Corporation (SABIC)’s representative, Jaffer Brothers, for the import of up to 300,000 tons of urea worth $100 million.

The first shipment of 60,000 tons will arrive by the end of February, while a similar quantity will be delivered in March.

TCP has also awarded a tender to Gavilon Fertiliser LLC USA for supply of 100,000 tons of urea as its bid of $408.68 per ton was found to be the lowest and in conformity with all technical specifications and conditions.

The Economic Coordination Committee (ECC) of the cabinet had directed the TCP to ensure supply of urea for Rabi crops. TCP accordingly awarded a tender for the import of 100,000 tons.

The rates received in the tender were in consonance with the prevailing international market prices of urea. As per tender terms and conditions, urea shipments would start within one week of opening of the letter of credit in favour of the successful bidder.

Rice sold

The TCP has also sold 25,000 tons of super Basmati rice to the two highest bidders, Al-Asad Rice Mills and Moro Trading Company, through tenders at a price of Rs65,072 per ton. The rice was procured by the corporation in 2009 on the directives of the federal government as a price support initiative to bring stability in the market.

It was earlier put on sale in April 2010, but it failed to attract appropriate prices due to the depressed international market.

Published in The Express Tribune, February 8^th, 2011.