Rizwan Bhatti.

KARACHI: Pakistan is set to export 50,000 metric tons of rice to Bangladesh under a Government-to-Government (G2G) arrangement, following the Trading Corporation of Pakistan’s decision to award an international tender to two successful bidders.

In December, to meet its domestic demand, Bangladesh expressed interest in importing rice from Pakistan on a G2G basis. In response, the TCP issued an international tender on December 31, inviting bids for the supply of 50,000 metric tons of Long Grain White Rice (IRRI-6) on Free on Board (FOB) Karachi/Gwadar and CIF liner out Chattogram Port, Bangladesh.

The tender, opened on Jan 6, 2025, attracted participation from 11 exporters and traders, who submitted bids ranging from $498.40 to $523.50 per metric ton for the export of 50,000 metric tons of Long Grain White Rice.

Bangladesh also expressed interest in importing 50,000 metric tons of Non-Basmati Parboiled Rice. However, Pakistani bidders did not submit any offers for this category.

After receiving bids, Syed Rafeo Bashir Shah, Chairman of the Trading Corporation of Pakistan (TCP), visited Dhaka to finalize the deal, signing a Memorandum of Understanding (MoU) for rice exports from Pakistan to Bangladesh. On behalf of Bangladesh, Abdul Khaleque, Director General of the Directorate General of Food, signed the MoU for rice imports.

Following the MoU and final approval from Bangladeshi authorities, TCP awarded the tender to the lowest bidder for the export of Long Grain White Rice. M/s Kap Impex, the lowest bidder in the rice export tender, secured the contract for supply of 25,000 metric tons Long Grain White Rice to Bangladesh at a rate of $498.40 per metric ton.

Meanwhile, the second lowest bidder, M/s Jetlee, was invited by TCP to match the lowest bid price to fulfill the remaining 25,000 metric tons quantity.

Upon accepting the offer, M/s Jetlee was also awarded the contract at the same rate of $498.40 per metric ton, completing the 50,000 metric ton export deal for the Bangladesh on G2G basis.

Sources said the rice shipment to Bangladesh is scheduled for dispatch in the last week of this month and will be exported as break bulk cargo, packed in 50 kg polypropylene (PP) woven bags.

According to sources, the tender’s terms and conditions stipulated that the validity of received bids was 15 working days from the date of opening. However, the validity period was extended in accordance with the Public Procurement Rules (PP Rules) 2004.

The performance bond will be forfeited without prior notice if the successful bidder breaches the contract or fails to comply with any contractual terms and conditions. The selected bidder is responsible for ensuring timely delivery and adhering to the quality and specification requirements set by TCP.

Meanwhile, Chairman of the Rice Exporters Association of Pakistan (REAP), Faisal Jahangir, welcomed the development as a significant milestone for regional trade, expressing confidence that it will strengthen bilateral ties between the two neighboring countries.

He also highlighted that rice exports to Bangladesh would further contribute to Pakistan’s growing rice sector, which reached a record-high export value of $4 billion by the end of the last fiscal year (FY24).

Jahangir added that exporters are actively working to secure direct rice export orders from Bangladesh, in addition to the Government-to-Government (G2G) arrangement.

Published Date: February 7, 2025