The much awaited Indian urea tender by Indian Potash Limited will close July 15. In a move not seen for a long time, IPL specified how many tons it was willing to buy. The company will only issue awards for 420,000 mt to be shipped by August 21. The tonnage is to be divided among specific east coast and west coast ports and limited to 60,000 mt each. On the west coast: Pipavav, Mundra, Adani Tuna and Adani Hazira. On the east coast: Kakinada, Krishnapatnam and Gangavaram.
The tender documents did note, however, that the specified port quantities “should not be construed as minimum quantities to be bought mandatorily.”
Also in a break from tradition, the company announced it would not engage in negotiations with tendering companies. In the past the importing companies have negotiated for lower prices based on specific ports. This time, however, the tender documents merely stated: “The tenderers may please note that bids will be finalized only on the basis of initial quotes and there will be no negotiation with tenderers. In case, it is felt that rates for any particular port are high in the judgment of the company, it reserves its right to reject such bids.”