Pakistan issues second sugar import tender for 100,000 tons after initial failure

By Staff Reporter

KARACHI: Pakistan is scrambling to shore up sugar supplies, issuing an international tender for 100,000 metric tons of white refined sugar as domestic prices spiral and inventories teeter on the brink of depletion.

The move comes as the South Asian nation grapples with a 36% surge in retail sugar prices since January, driven by a sharp drop in local production and a controversial export boom that has drained reserves.

The Trading Corporation of Pakistan (TCP), the state’s procurement arm, set a July 31 deadline for price offers, traders familiar with the tender said on Friday. The government is seeking breakbulk shipments of 50,000 tons for delivery between August 21 and September 5, or September 1 to 15, with another 50,000 tons in ocean shipping containers to arrive between August 21 and September 10. All supplies must reach Pakistan by September 30, with containerized shipments allowed a five-day grace period.

The tender excludes sugar from India and Israel, leaving room for optional origins.

This marks Pakistan’s second attempt to secure imports in as many weeks. A previous tender for 50,000 tons, issued on July 22, drew no bids, with traders citing an unrealistic August 1-15 loading window as a dealbreaker. The new tender’s extended timeline signals an effort to attract suppliers after the earlier misstep.

The import push follows a July 8 cabinet decision to greenlight 500,000 tons of sugar imports to stabilize prices, which have climbed to Rs200 per kilogram from Rs140 at the start of the year, a 36% jump. The price surge stems from a 14% drop in domestic production, which fell to 5.9 million metric tons this year due to adverse weather and lower cane yields.

Adding to the strain, Pakistan’s sugar exports skyrocketed 2,200% in the last fiscal year, with 765,734 metric tons shipped between July and May, generating Rs114 billion in revenue, per industry data. While the export windfall bolstered Pakistan’s fragile foreign exchange reserves, it decimated local stocks. The Pakistan Sugar Mills Association (PSMA) estimates current inventories of 2.8 million metric tons will last only until November, given monthly consumption of 535,000 metric tons against an annual demand of 6.4 million tons.

The government, which previously justified its export policy by pointing to ample domestic supplies, now faces a supply crunch that has sparked public outcry. Critics argue the export approvals prioritized sugar millers’ profits over consumer affordability, leaving households to bear the brunt of soaring costs. The import plan is a belated attempt to bridge the gap, but analysts warn that global sugar prices, currently experiencing fluctuations, could keep retail prices elevated even with new shipments.