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Fertilizers: What will be the new urea supplier company?

Ready Oil Supply will no longer be a urea supplier following the Supervisor’s observations. | Font: Andean

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Ministry of Agrarian Development and Irrigation (Midagri) announced a change in the supplier of urea in the process of purchasing the last fertilizers after the Office of the Comptroller oversaw the tender.

According to Midagri CEO Andrés Alencastre, Ready Oil Supply, which won Good Pro a week ago, will be disqualified and a third finalist offer will be selected: Unionspeed OOO

“We have decided to take into account the considerations expressed by the controller, even if it means a higher price in this acquisition. I think the time and the urgency justify it,” he said during the PCM conference.

According to the notary deed of the court proceedings, to which the RPP had access, Unionsped offered to sell urea at US$623/ton, higher than the US$580/ton offered by Ready Oil Supply.

The new supplier company also offered a delivery time of this first batch of urea within 44 days, which means that this fertilizer will only arrive at the end of September, despite the fact that the 2022-2023 agricultural campaign has already started in August of this year. .

It is worth noting that Alencastre has not yet provided information about the signing of a contract with Unionspeedtherefore, fertilizer delivery may take longer.

“The report (of the Accounts Chamber) must be answered, and mechanisms will be created to overcome the situation,” the minister said.

Earlier, the head of Midagri assured that the distribution of carbamide to farmers will be made from the second half of August, and about 48,000 small producers will benefit from the carbamide, which the state will provide at a social price.

fertilizer
In addition to Ready Oil Supply, Direct Agro (Grupo 06 SA) and Unionsped were finalists in the acquisition process. | Font: PTR

doWhat comments did the prosecutor’s office make?

Last weekend, the Comptroller General of the Republic published a report on violations found in the third tender for the supply of 65,587 tons of urea.

As they pointed out business has not submitted its financial statements for the past three years as required by the process. It only presented those that fit FY 2021 and claimed to correct this discrepancy that it ceased operations in 2019 and 2020 due to the pandemic.

The agency indicated that the information provided by the company is not true, since what is expressed in its articles of association indicates that it is a limited liability company and was organized on February 4, 2021.

Source: RPP

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