The Hindu Business Line : Tea exporters bid for Iraq export order

Trade sources told Business Line that the tender for around 4,000 tonnes of tea for Iraq has been issued by the World Food Programme (WFP), which is under the UN umbrella.

``However, this time round India will have to compete with Sri Lanka, Vietnam and Indonesia as the same tender has been floated to all these producing nations. While today is the cut off date for placing the bids, on March 12 the final announcement as to who has been awarded the contract will be made,'' a leading exporter to Iraq said. Sources said that delivery is to be made between March 25 and April 25. ``This time around there are no LCs etc being issued. It is cash against documents. Four days after arrival of the goods at its destination only will the full payment be made by WFP,'' a trader said.

Iraq has also sought for the first time a 5 per cent performance bond from each successful bidder. ``A performance bond of five per cent of the contract value has to be given in writing by the sellers bank in favour of WFP-Iraq, within 48 hours from the date of award and prior to signing the contract. In effect, what it means is that the guarantor will have to cough up this amount if he is unable to fulfil his commitment,'' sources said.

As regards the issue of certificate of origin, exporters maintained that certification is not an issue and that the buyers are happy with the quality supplied.

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