By Staff Reporter
ISLAMABAD: The state-owned Trading Corporation of Pakistan (TCP) received a lowest offer of $545 per metric ton, cost and freight included (c&f), in an international tender to purchase 100,000 metric tons of white sugar that closed on Monday, European traders said in initial assessments.
No purchase has been confirmed, and offers remain under consideration, with the TCP likely to negotiate for several days before finalizing any deal, traders added. The agency’s decision-making process often weighs factors such as delivery schedules and supplier reliability alongside price. “They don’t always go for the cheapest offer if the conditions aren’t right,” a trader familiar with the process said.
The tender follows Pakistan’s recent efforts to stabilize its domestic sugar market, which has been strained by supply shortages and rising global commodity prices. Retail sugar prices in the country have surged in recent months, exacerbating inflationary pressures in an economy already grappling with challenges.
Earlier, the TCP secured 30,000 metric tons of medium-grade white sugar through a tender that closed in late August, sourcing the volume from Dubai-based Al Khaleej Sugar at an estimated $582.50 per ton (c&f), according to traders. That purchase forms part of a broader government plan to import up to 200,000 tons of sugar to bolster domestic stocks.
The government has authorized imports of 500,000 tons to curb price spikes and ensure food security, with the TCP tasked with executing the strategy. On August 14, the agency reported acquiring 105,000 tons of sugar, reflecting Islamabad’s urgency to address supply constraints.
Market participants noted that further estimates of prices and volumes in the latest tender could emerge as negotiations progress. Pakistan’s import activity is being closely watched, as it could influence global sugar prices, which have faced upward pressure due to tight supplies.
The TCP’s ability to secure additional volumes before an October 31 deadline will hinge on the competitiveness of offers and budgetary constraints, traders said. The agency’s decisions in the coming days will likely shape both domestic market dynamics and broader trends in the global sugar trade.
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