By Staff Reporter
ISLAMABAD: Pakistan’s state-owned Trading Corporation of Pakistan (TCP) has acquired an initial 30,000 metric tons of white sugar through an international tender that closed last week, Reuters reported on Tuesday, as the South Asian nation grapples with surging domestic sugar prices.
The purchase, part of a broader effort to secure up to 200,000 tons, signals Islamabad’s urgency to stabilise supply.
The TCP, tasked with ensuring food security in Pakistan, is believed to have sourced the 30,000 tons of medium-grade sugar from Dubai-based Al Khaleej Sugar at an estimated $582.50 per ton, cost and freight (c&f). The deal follows a sharp rise in domestic retail sugar prices, prompting the government to greenlight imports of 500,000 tons to cool the market.
The tender, which sought offers for fine, small, and medium-grade sugar for delivery by October 31, saw bids submitted on August 21. Traders noted that the TCP extended the validity of other offers until Wednesday, August 27, raising the possibility of additional purchases in the coming days. “The extension suggests they’re weighing their options carefully, balancing price with other terms,” a European trader said.
Pakistan’s sugar market has been under strain, with retail prices climbing rapidly in recent months, driven by supply constraints and rising global commodity costs. The government’s import plan aims to shore up domestic stocks and prevent further price spikes, which risk stoking inflation in a country already navigating economic challenges.
The TCP’s latest move builds on its earlier purchase of 105,000 tons of sugar reported on August 14. Traders cautioned that while the lowest bid in the tender was not disclosed, TCP’s decision-making process often prioritizes factors beyond price, such as delivery timelines and supplier reliability. “They don’t always go for the cheapest offer if the conditions aren’t right,” another trader said.
Market participants are closely watching Pakistan’s next steps, as the country’s import activity could influence global sugar prices, which have faced upward pressure amid tight supplies. The TCP’s ability to secure additional volumes before the October 31 deadline will depend on the attractiveness of remaining offers and the government’s budget constraints.
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