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Mixed bag of companies’ line up to supply white cane sugar

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New faces on white cane sugar procurement dominate the Ethiopian Sugar Corporation (ESC) invitation to supply the sweet.
It is recalled that last week, the corporation invited global interested suppliers to submit their technical and financial proposal for the procurement of at least 200,000 metric tons of plantation white cane sugar.
On the technical opening on the morning of Thursday May 9, seven companies have submitted their proposal, while four of them are inexperienced for such or similar tenders in Ethiopia.
As per the information that Capital obtained, Husbandry International, Osirius Group, Murba Foreign Trade, Mill House International, ED and F MAN, Agrocorp International and Sucden have appeared with their documents.
However, Osirius Group and Murba Foreign Trade, who are US companies, in addition to Mill House International of South Africa and Husbandry International are the fresh face offering their bid in Ethiopia.
According to the information, Husbandry International and Murba Foreign Trade have been disqualified because of lack of bid security and manufacturer certification respectively.
Experts in the sector have however pushed for vigilance so as not to have a repeated case as that of the 600,000 ton wheat procurement. It is to be recalled that the wheat procurement failed to go through as a result of the awarded companies going missing for not having performance bonds.
In the current scenario, ED and F MAN, Agrocorp International and Sucden are well known for commodity tenders in Ethiopia. The Singapore based Agrocorp International was the company that won the last tender to supply 200,000 metric tons of sugar a year ago and supplied the first 100,000 metric tons, while the second batch was not transported owing to ESC not issuing the letter of credit (LC) as per the contract time.
The latest tender is targeted to supply the commodity on differed payment LC scheme that might be paid in a year or 18 months’ time that shall depend upon the contract agreement between the supplier and buyer, while the tender document has given optional price quotation LC at sight payment.
The latest tender has opened to suppliers to choose their shipment proceed.
A day after the opening of the technical document, on Friday May 20 afternoon the financial document of four companies were opened, having passed the technical part.
New potential suppliers, Osirius Group of USA, disclosed to load the cargo from Brazil, offered CFR Djibouti USD 580, USD 608 and USD 900 per ton for LC at sight, and the 12 month and 18 month differed LC payment respectively per ton with USD 3,000 of port visit. Although, as required per the tender document the company didn’t mention the FOB and freight rate on its financial offer.
Agrocorp offered FOB USD 618.35 and USD 679.86 for LC at sight and LC for 12 months respectively in addition to USD 120 fright rate. On its offer for CFR Djibouti the Singaporean company that stated the commodity origin as India put USD 738.35 and USD 799.87 for LC at sight and LC for 12 months respectively in addition to USD 120 fright rate.
ED and F MAN of the UK, which is also known in the Ethiopian market following its good track record like Agrocorp and Sucden, gave its offer for the three payment options. On the LC at sight and LC for 12 months it offered USD 710 with USD 99 for freight whilst for LC for 18 months it offered USD 800 with similar freight rate.
The company that mentioned India, Thailand or UAE as commodity origin offered USD 809 for at sight and 12 months payment modality and USD 899 for 18 months LC payment. The fright price was the same as mentioned on FOB.
Sucden which expressed its interest to supply 100,000 metric tons of the sweat also offered its rate on the three payment options. The French company offered FOB USD 621.63 per ton for the supply of sugar in the payment modality LC at sight. Regarding LC for 12 months and LC for 18 months the company offered FOB USD 1, 011.63 and USD 1, 411.63.
On its CFR Djibouti offer it has given USD 721.63, USD 1, 111.63 and 1, 511.63 for LC at sight, and the 12 month and 18 month differed LC payment respectively per ton. Sucden’s freight cost is USD 100 and the origin would be India, Thailand or UAE.
All the three companies have offered USD 20,000 in port visit expense.

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