Sugar export tender fails to attract bidders

The Trading Corporation of Pakistan (TCP) opened its tender on September 30 to export 107,739 metric tons of imported white refined sugar from its Pipri Godown in Karachi. The tender received no bids, with reports linking the lack of interest to the government’s high reserve price.

TCP had fixed a uniform reserve price of $660 per metric ton, equivalent to Rs184,800 at an exchange rate of Rs280 to the dollar. The total reserve value of the 11 lots was around Rs19.91 billion, or $71.1 million.

Global sugar prices remain much lower

International prices for white refined sugar were reported at around $505 to $515 per metric ton, leaving a gap of at least $145 per ton between the global market and TCP’s reserve price. Other market reports put international prices slightly higher at around $510 to $520, but still significantly below the government’s asking price.

The sugar was imported last year to meet domestic demand. With stocks now in surplus, the government planned to export the excess before the next crushing season begins in November.

TCP had also reduced the earnest money requirement from 10% to 2% in an effort to attract bidders. However, the relaxation failed to generate participation, leaving the tender without a single offer.