HAMBURG: Ethiopia’s state grain agency has asked for the validity of price offers to be extended in its international tender to buy 400,000 tonnes of wheat which closed in March, traders said.
No purchase has yet been made, they said.
“The problem seems to be that the lowest offer in the tender did not meet the tender conditions that the price must include road transport in Ethiopia to delivery points inside the country,” one European trader said. “But there seems to be a bit of a debate about whether this lower price should be accepted anyway.”
The tender had closed on March 13, seeking shipment two months after contract award.
The lowest offer was $250.15 a tonne c&f to Ethiopian ports but this apparently did not fulfil all tender conditions to include inland transport costs, traders said on March 14.
The lowest offer fulfilling the tender conditions including the cost of internal transport in Ethiopia was much higher at $269.00 a tonne c&f to Ethiopian ports, they said.
Ethiopia is struggling with the impact of a drought last year that devastated farms in some regions.
“Ethiopia has now asked for the offers to stay valid for a longer period,” said a dealer at one trading company which participated in the tender. “We could naturally submit much lower new offers if they say you do not have to include internal trucking costs, which are very expensive.”
The country has a large wheat import requirement but reportedly failed to agree a purchase in its last wheat tender in December 2017 because of contractual disagreements.
Source: Brecorder
