By Staff Reporter
ISLAMABAD: The state-run Trading Corporation of Pakistan (TCP) received a lowest offer of $539.00 per tonne, cost and freight (c&f), in its international tender to procure 100,000 tonnes of white refined sugar on Monday, traders said, as the government seeks to tame soaring domestic prices.
The tender, issued last week, follows a failed July bid for 50,000 tonnes that drew no offers and another for 100,000 tonnes on July 31, where the lowest price was also $539.00 per tonne c&f but no deal was finalised. The latest lowest offer came from trading house ED&F Man for 50,000 tonnes of fine-grade sugar from any origin, with bids still under review and no purchases confirmed, traders said.
Other offers included Dreyfus at $580.75 per tonne c&f for 25,000 tonnes of fine-grade sugar from any origin, and Al Khaleej Sugar at $586.00 per tonne c&f for 30,000 tonnes of medium-grade sugar from the United Arab Emirates. Trading house Bare offered $555.00 per tonne c&f for medium-grade and $550.00 per tonne c&f for fine-grade sugar, both from Brazil. Further price and volume estimates may emerge, traders noted.
The tender seeks small/fine- and medium-grade sugar from worldwide origins, excluding India and Israel. Shipments are scheduled for September, with 50,000 tonnes of breakbulk supplies due between September 1 and 15, and the rest from September 10 to 25. Container shipments are set for September 1 to 20, with all sugar to arrive in Pakistan by October 20.
Pakistan’s sugar market faces pressure from rising retail prices, amplifying public frustration over food costs. On July 8, the government approved importing 500,000 tonnes to stabilise prices. National Food Security and Research Minister Rana Tanveer Hussain rejected shortage claims last month. “A perception is being created as if there is a major issue regarding the availability, supply or pricing of sugar.”
Hussain noted Pakistan started the season with 800,000 metric tons in reserve, with the crushing season yielding 6.8 million metric tons against a 6.3-million-ton demand, creating a 1.3-million-ton surplus. “To prevent a supply glut that could harm both farmers and millers, the government had allowed gradual sugar exports,” he said, with 750,000 metric tons exported last year for $402 million.
Exports initially lowered retail prices from 138 rupees per kilogram to 119 rupees after starting in October 2024. However, the 2024-25 season’s erratic weather cut production to 5.8 million metric tons, below the projected 7 million tons. Exports were halted in January 2025. By April 30, stocks hit 6.3 million metric tons, including a 0.5-million-ton buffer, matching annual consumption. Current reserves of 2 million tons suffice for three months, Hussain said.
Despite ample stocks, prices spiked, which Hussain blamed on market manipulation, with sugarcane procurement costs rising from 450 to 700 rupees per 40 kilograms. The government capped ex-mill prices at 165 rupees per kilogram and retail at 173 rupees. However sugar in retail hit over 200 rupees, though the Pakistan Sugar Mills Association (PSMA) confirmed mills supply sugar at 165 rupees per kilogram ex-mill, with stocks sufficient until mid-November 2025. A spokesperson attributed past disruptions to “divergent government measures,” now resolved, and denied exports drove price hikes.
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