ISLAMABAD: Pakistan cancelled a 50,000-tonne white sugar contract with Sadan General Trading on Wednesday after the company failed to make a delivery on time, a government trade agency official said.
“We have cancelled the contract awarded to Sadan in February for 50,000 tonnes,” Anjum Bashir, chairman of the Trading Corporation of Pakistan (TCP), which issued the tender, told Reuters.
“They were supposed to ship the goods by March 27, they have availed of the penalty clause of 10 days after which we have cancelled the contract.” The TCP has awarded a separate contract for another 50,000 tonnes to Sadan in a tender opened in March, and Bashir said his agency would wait for the company to make delivery according to the tender terms.
“That is a separate document...we have issued the tender and under that document we are obliged to wait for that (delivery),” he said, adding that the second contract would also be cancelled if the company failed to make delivery.
Pakistan is buying sugar from the international market after a forecast that its 2009/10 crop would yield about 3 million tonnes of white sugar, falling short of annual demand of 4.2 million.
Source The News
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