Pakistan Sugar Tender: 0.1 Million Tonnes Purchase
pakistan to Import 500,000 Tonnes of Sugar Amid Rising Prices
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Pakistan has approved plans to import 500,000 tonnes of sugar, a move designed to stabilize domestic prices that have been steadily climbing since January. This decision comes after a previous tender seeking 50,000 tonnes received no offers, highlighting the complexities of the current sugar market and prompting the government to take decisive action.
Addressing a Supply-demand Imbalance
The surge in retail sugar prices has raised concerns for consumers across Pakistan. The Trading Corporation of Pakistan (TCP) is spearheading the import effort, aiming to bridge the gap between supply and demand. The lowest price offer received in the recent July 31 tender was $539.00 per tonne, cost and freight included (c&f).
The initial July 22 tender failed to attract bids, reportedly due to the short timeframe for shipment - requiring loading between August 1-15. This illustrates the logistical challenges and the need for realistic timelines when sourcing sugar internationally.
Tender Details and Shipment Schedules
The new tender specifies the procurement of small/fine and medium-grade sugar from global sources, with the notable exclusion of India and Israel. Suppliers can offer sugar packed in bags, transported via ocean shipping containers or breakbulk.
Here’s a breakdown of the shipment schedule:
Breakbulk: September 1-15 for 50,000 tonnes, and September 10-25 for another 50,000 tonnes.
Containerized: September 1-20 for 50,000 tonnes.
All shipments must arrive in Pakistan by October 20th, ensuring a timely influx of supply before peak demand periods.
from Export Surge to Domestic Price Hikes: A Puzzling Trend
The government’s sugar trade policy is currently under scrutiny by traders, who are struggling to reconcile recent export figures with the current domestic price situation. During Fiscal Year 2025 (FY25), Pakistan exported a substantial 765,734 tonnes of sugar, generating $411 million in foreign exchange – an average price of $537 per tonne. This represents a significant increase compared to FY24, were only 33,101 tonnes were exported, earning $21 million.
Despite this remarkable export performance earlier in the year,Pakistani consumers are now facing higher prices at the retail level. This apparent contradiction has fueled questions about the effectiveness of current trade policies and the factors driving domestic sugar prices.
Government Intervention and Stock Monitoring
In response to the rising prices, the government has implemented measures to closely monitor sugar stocks across the country. Officials will be stationed at each sugar mill to oversee inventory levels and ensure adherence to supply commitments made by the Pakistan Sugar Mills Association (PSMA). This proactive approach aims to prevent hoarding and ensure a consistent supply of sugar to the market.The situation underscores the delicate balance between supporting export revenue and maintaining affordable prices for domestic consumers. Continued monitoring and strategic import decisions will be crucial in navigating the complexities of the sugar market and ensuring food security for Pakistan.