The Government of Jammu and Kashmir issued Abbreviated Tender Notice inviting tenders from Government/Semi Government Department/Approved Suppliers/Original Manufactures/Authorized Distributors for supply of Nutrition items. One of the items indicated in the Notice was for supply of 1500 Quintals Moongi Green Whole . The petitioner-National Steel Trading Corporation offered to supply Moongi Green Whole at Rs.4798/- per Quintal whereas the rate offered by Durga Dal and Basin Mills respondent No.3 was Rs.5050/- per quintal. Although the petitioner s rate was lowest, yet he was placed orders for supply of only 50% of the quantity needed by the Government and 50% was allotted to respondent No.3 at the rate offered by the petitioner although it had offered to supply at higher rate. The supply of 50% of the tendered quantity of Moongi Green Whole to respondent No.3 is justified by the Staterespondents on the plea that being a Small Scale Industrial Unit, the respondent was entitled to Price Preference. The petitioner has filed this Writ Petition questioning the State-respondents order whereby 50% of the tendered quantity has been ordered to be allotted to respondent No.3. I have heard learned counsel for the parties. Although there is no merit in the petitioner s learned counsel s first submission that there being no Outside State Trader in competition for award of Contract, the respondent was not entitled to Price Preference, yet his second plea that even if respondent No.3 was entitled to Price Preference, the Price Preference could not be given to it in the present case because it was not participating in the competition for supply of any manufactured item, is found substantiated. This is so because in terms of the Package of Incentives made available by the State-Government to the Small Scale Industrial Units vide Government Order No.21-Ind of 2004 dated 27.01.2004, the Price Preference is allowable to existing Units and New Industrial Units only after they go in for production and on their Product. The Tender issued by the District Programme Officer, ICDS, Rajouri for Moongi Green Whole, being not the product manufactured by respondent No.3 which is registered for processing of Dal(Gram) and Basin besides processing of Moong and Mash, would not be entitled to Price Preference while competing for the supply of Moongi Green Whole, which was not a finished product on which Price Preference could be claimed. Its entitlement to Price Preference is only for those items which were processed by it in its Unit and not on any raw material. The State-respondents have, therefore, erred in curtailing the petitioner s supply of 50% of Moongi Green Whole to the ICDS Rajouri and giving it to respondent No.3. This Petition, accordingly, succeeds and is, therefore, allowed quashing State-respondents order to respondent No.3 to make supply of 50% of Moongi Green Whole . A direction shall, accordingly, issue to the Staterespondents to place orders with the petitioner for supply of 100% quantity of Moongi Green Whole in view of its having been adjudged as lowest tenderer.