By Staff Reporter
KARACHI: Pakistan’s state-owned Trading Corporation of Pakistan (TCP) launched a fresh international tender on Thursday to procure 200,000 metric tons of white refined sugar, traders said, as the government seeks to address tight domestic supplies
The tender, with a submission deadline of August 21, seeks price offers for fine, small, and medium-grade sugar, with shipments required to arrive in Pakistan by October 31. The move follows a recent tender that closed this week, in which the TCP secured approximately 55,000 tons of white sugar from an offer of up to 100,000 tons, according to trade sources.
The TCP purchased 30,000 tons of medium-grade sugar from Dubai-based Al Khaleej Sugar at $586.00 per ton, cost and freight included, and 25,000 tons of fine-grade sugar from Swiss trading house Louis Dreyfus Co. at around $580 per ton. Traders indicated that another bidder has been asked to revise its offer, with a potential additional award expected before the week’s end.
Shipments from the earlier tender are scheduled for September, with 50,000 tons of breakbulk supplies due between September 1 and 15, and the remainder from September 10 to 25. Container shipments are set for September 1 to 20, with all sugar required to reach Pakistan by October 20.
The latest tender comes amid mounting pressure on the government to stabilize a volatile sugar market, where retail prices have surged beyond 200 rupees per kilogram, far exceeding the government’s capped retail price of 173 rupees and ex-mill price of 165 rupees. The price spike has fueled public discontent, compounding frustrations over rising food costs.
Pakistan’s sugar sector has faced significant challenges this year. The 2024-25 crushing season yielded 5.8 million metric tons, falling short of the projected 7 million tons due to erratic weather, against a domestic demand of 6.3 million tons. The shortfall forced the government to halt sugar exports in January 2025, after allowing 750,000 tons to be shipped last year, which generated $402 million in revenue.
At the start of the season, Pakistan held 800,000 tons in reserve, and the 2024-25 season initially produced a 1.3-million-ton surplus. Exports helped lower retail prices from 138 rupees per kilogram to 119 rupees starting in October 2024. However, the reduced output this season tightened supplies, driving prices upward.
As of April 30, national sugar stocks stood at 6.3 million tons, including a 0.5-million-ton buffer, sufficient to meet annual consumption. Current reserves of 2 million tons are enough for three months, but prices have continued to climb, which the government attributes to market manipulation.
The TCP’s recent procurement efforts have met with mixed success. A July tender for 50,000 tons received no bids, while a subsequent tender for 100,000 tons on July 31 failed to secure a deal due to high prices. To address the crisis, the government approved imports of 500,000 tons on July 8 to bolster supplies and curb price hikes.
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