By Staff Reporter
KARACHI: Pakistan’s state trading agency received a low offer of $534.75 a metric ton, cost and freight included, in an international tender to purchase 100,000 tons of white sugar, according to initial assessments from traders.
The bid, submitted by trading house Louis Dreyfus Co., was for 25,000 tons of small-grade sugar, marking the cheapest proposal in the latest effort by Pakistan to stabilise soaring domestic sugar prices.
The Trading Corporation of Pakistan (TCP), which opened the tender on Tuesday, is evaluating offers but has not yet confirmed any purchases, traders said. The agency typically negotiates for several days before finalizing deals, leaving room for further adjustments in price or volume.
Pakistan, grappling with sharp increases in retail sugar prices, has authorised the import of 500,000 tons of sugar to bolster domestic supply. The TCP has been active in global markets, holding tenders in July, August, and September to secure supplies. The latest tender specifies fine, small, and medium-grade white sugar, with shipments required to arrive in Pakistan by November 7.
Three other trading houses participated in the tender, submitting offers for various grades and quantities, all priced on a cost-and-freight basis, according to traders. Al Khaleej Sugar offered 30,000 tons of medium-grade sugar at approximately $568.50 per ton and 60,000 tons of small-grade sugar at $558.50 per ton. Sucden Middle East bid $544.00 per ton for 25,000 tons of small-grade sugar, while ED&F Man offered 50,000 tons of small-grade sugar at $559.00 per ton.
The TCP stipulated that sugar must come from any global origin except India, Israel, or other countries under sanctions. Traders noted that the reported prices and volumes are preliminary, with further estimates possible as negotiations progress.
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