TCP awards tender for import of urea

KARACHI: The Trading Corporation of Pakistan (TCP) has awarded the tender for the import of 100,000 tons of urea to American firm Transammonia.

According to a press release issued by the TCP, Transammonia quoted a price of $287.89 per ton. Eight bidders submitted bids for the tender that was opened on July 22.

The prices quoted ranged between $287.89 and $308.89 with the lowest bid coming from the American firm that was awarded the tender.

TCP Public Relations Officer Ahmed Brohi explained that the quoted price includes cost and freight and it would be the total landed cost of the urea procured through the tender.

Earlier this month on July 6, the TCP awarded a contract for the import of 50,000 tons of urea to a German firm, Helm Dungemittel, at $292 per ton.

The TCP was tasked with the procurement of an additional 400,000 tons by the Economic Coordination Committee to meet requirements of farmers during the Kharif season of 2010.

The notification pointed out that after awarding the latest tender, all contracts to meet the task have been finalised.

So far, shipments of 212,171 tons of urea have arrived in the country while another 47,000 tons are expected to arrive in about two weeks. The TCP had delivered 612,000 tons of urea to the National Fertiliser Marketing Limited during the year 2009-10.

Standard Capital Securities Head of Research Faisal Shaji told The Express Tribune that local price of urea stands at Rs884 per 50kg bag while the price of di-ammonium phosphate (DAP) is Rs2,639 per 50kg bag.

He commented that timely delivery of recently awarded tenders will ensure stability in prices of fertilisers and assist farmers with plantation of Kharif crops.

Published in The Express Tribune, July 24^th, 2010.