European traders have reported that no price offers were submitted in response to Pakistan’s tender on Wednesday for the purchase of 110,000 metric tons of wheat, Reuters reported today.
Initial assessments suggest that traders found the tender terms unattractive, particularly due to the requirement of a bid bond for 2 percent of the offer value and a 5 percent performance bond of the contract value.
Traders indicated that despite a high level of interest from private buyers in Pakistan for wheat, the specified terms posed a deterrent.
Some traders commented that such conditions are unnecessary to meet the demand from Pakistani buyers.
The tender, issued by the Trading Corporation of Pakistan (TCP), sought shipment in consignments of at least 50,000 tons in two periods, spanning from January 10 to January 15 and January 17 to January 22.
The stipulated arrival date in Pakistan was set for February 12, 2024.
It is important to note that these details are based on assessments from traders, and additional information may emerge in subsequent reports.
Despite reports of bumper Wheat production of 28 million tons, Pakistan faces a 3 million tons Wheat shortfall. The government has allowed both the public and private sectors to meet the shortfall and curb the rising flour prices.
