Tender for 100,000 tons of sugar cancelled

KARACHI: The Trading Corporation of Pakistan (TCP) has cancelled a tender for the import of 100,000 tons of sugar awarded to a Chinese firm.

Public Relations Officer of the TCP, Ahmed Bux Brohi, said that the Executive Committee of the corporation has decided to cancel the import contract because the Chinese firm was unable to honour its commitments.

The contract had been awarded to Yunnan Coal Chemical Industry Group with an understanding that the consignment of sugar would be delivered within three weeks of opening a letter of credit.

A notification issued by the TCP clarified that the company was allowed a further grace period of 10 days to make delivery on the condition that it would pay a penalty of $0.10 per ton per day.

However, the delivery had not reached its destination till the lapse of this time period at midnight of July 16.

It was learnt that the executive committee of the board held a special meeting on Saturday to review the terms of contract for the import of sugar into the country.

The cancellation orders were issued after confirmation from Brazil that the supplier had, to date, not secured the required stock of sugar.

The press release also said that the import contract for another shipment expected from Sadat Business Group Limited of Dubai for 50,000 tons of sugar would also expire on July 18.

However, this company has requested an extension till July 30 for the delivery of sugar, which the committee granted on the condition that nomination of a ship to bring the consignment to Pakistan will be completed by July 22.

The TCP has given assurances that the cancellation of the import order for 100,000 tons of sugar along with the delay in receipt of another 50,000 tons will not cause shortages in the country during the month of Ramazan.

The TCP asserted that it has received 264,111 tons of sugar and will have arrivals of around 333,000 tons by September. It said that these stocks will be sold through Utility Stores Corporation and Canteen Store Departments across the country.

Two more tenders have already been floated for the import of sugar. TCP officials say that these will be opened on July 31 and August 7, respectively. They claim that these orders will offset the cancelled order, ensuring a steady supply of sugar during Ramazan.

Published in  The Express Tribune, July 18^th, 2010.