The contractors say they cannot comply with the tender terms because the Russia-Ukraine crisis caused palm olein prices to skyrocket.
The contractors say they cannot comply with the tender terms because the Russia-Ukraine crisis caused palm olein prices to skyrocket.
The Madras High Court on Friday reserved order on a batch of cases filed by government contractors expressing their inability to supply additional quantities of palm olein to the Tamil Nadu State Civil Supplies Corporation (TNCSC) at old prices. Commodities after the Russia-Ukraine crisis.
Justice GR Swaminathan deferred the decision on the batch after hearing R Shunmugasundaram, Advocate General for TNCSC and senior advocates AL Somayaji and ARL Sundarasan for various contractors, who feared that the corporation would not supply additional quantities at old prices. Blacklist them.
In his affidavit, Suresh Gattareddy, partner at Chennai-based Starshine Logistics, said the firm was in the business of providing logistics and trading in food products like pulses, edible oil and sugar. It had also obtained the Importer-Exporter Code for the purpose of importing and exporting food products.
On 20 December, TNCSC invited bids for the supply of 400 lakh pouches (one liter each) of Palm Olein and the petitioner received the tender in January for the supply of 65 lakh pouches at a negotiated rate of ₹120.25. The first installment of 32.50 lakh pouches was supplied before February 21 and the second before March 28.
Since clause 17(d) of the tender notification empowers TNCSC to change the final quantity up to 25% as per requirement, the Corporation sent an e-mail to the petitioner on March 2, directing it to supply additional quantity of Rs.16.25 lakh . Pouch on or before 3rd May at an agreed price of ₹120.25 for each sachet.
However, the petitioner firm expressed its inability to make such additional supplies as the international price of palm olein had increased from $1,575 per tonne on February 22 to $2,000 on March 3. The huge demand growth was attributed to the halt in exports. of sunflower oil from Russia and Ukraine.
Faced with the threat of being blacklisted and not allowed to participate in future tenders, if it does not comply with the tender condition of supplying 25% additional quantity on the agreed price, the petitioner firm has Urged the court to quash the e-mail order of TNCSC. 16.25 lakh pouches of Palm Olein.