Bunge offers lowest price for wheat purchase

By Dawit Endeshaw – The Reporter

Bunge S.A–Switzerland-based trading company–has managed to give a lowest offer of 286 million birr for the supply of 35,000 metric tons of wheat, The Reporter has learnt.

The wheat is planned to be acquired as part of the government’s and donor’s effort to support those who are under The Fourth Productive Safety Net Program.

The Public Procurement & Property Disposal Service (PPPDS) floated the tender on behalf of the Ministry of Agriculture & Livestock.

In this respect, among eight wheat suppliers in the international grain market, which have bought the tender document, only three submitted their offers.

The bid for the supply of 35,000 metric tons of wheat was divided into two lots, each with 17,500 metric ton lots. In this regard, Bunge S.A gave the lowest prices of USD 295 and USD 299 per ton for each lot.

The bid was opened on May 17, 2018, at the PPPDS’s premises located off King George VI Street.

The two lots are set to be distributed among two different warehouse destinations in Adama and Komobolcha.

In this respect, the second lowest offer came from Hakan Agro DMCC–a UAE based company—which listed the lowest price of USD 297.77 per one metric ton for Lot 2 to be delivered at Kombolcha Warehouse.

In addition, the third lowest offer of USD 299 dollars (for Lot 1) came from Bunge.

This time around, Promising International gave USD 301.45 and USD 302.45 per ton, for both lots.

The latest wheat purchase will be the second biggest in terms of size in the past six months.

It is to be recalled that six months ago, Ethiopia purchased 400,000 metric ton of wheat to feed close to 5.4 million people out of the 8.5 million people affected by drought.

In related news, the Service has decided to extend the bid opening date of the controversial wheat purchase, amounting 400,000 metric ton, by one week. The Service has also downsized the purchase amount from 400,000 metric ton to 200,000 metric ton.

In return, PPPDS awarded Promising half the amount from the 400,000 metric ton which amounts to a total price of 1.64 billion birr.

Share your thoughts on this post