Pakistan Sugar Tender: Offers Exceed 100,000 Tonnes
Pakistan Boosts Sugar Tender Size Amid Price Surge, Traders Eye October Deliveries
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PakistanS Trading Corporation of Pakistan (TCP) has doubled the size of its latest sugar tender, seeking 500,000 tonnes of the commodity as domestic prices continue to climb. This move signals a proactive approach to securing supplies ahead of peak demand, but also leaves traders questioning the government’s broader sugar trade policy. We’ll explore the details of the tender, recent trading activity, and the factors driving this increased urgency in the Pakistani sugar market.
Recent Tender Results and Offers
the TCP’s new tender follows a previous unsuccessful attempt on july 31st to procure 100,000 tonnes of sugar,where the lowest bid came in at $539.00 per tonne,cost and freight (c&f).This lack of prosperous purchase prompted the significant increase in volume for the current tender.
Initial offers received reveal a competitive landscape. Dreyfus has offered $580.75 a tonne c&f for 25,000 tonnes of fine-grade sugar from any origin.Al Khaleej Sugar countered with $586.00 a tonne c&f for 30,000 tonnes of medium-grade sugar sourced specifically from the united Arab emirates.
Trading house Bare submitted bids of $555.00 c&f for medium-grade and $550.00 c&f for fine-grade sugar, both originating from Brazil. These figures highlight the varying prices based on sugar grade and origin,offering the TCP options to optimize its procurement strategy. It’s crucial to note that these are preliminary assessments, and further price and volume estimates are anticipated.
Tender Specifications and Delivery Schedule
The current tender specifically requests both small/fine-grade and medium-grade sugar from worldwide origins, with the notable exclusion of India and Israel.The TCP is aiming for all sugar deliveries to reach Pakistan by October 20th, a critical timeframe to ensure adequate supply before anticipated demand increases.
To facilitate this, a phased shipment schedule has been outlined:
September 1-15: 50,000 tonnes of breakbulk supplies are required.
September 10-25: The remaining tonnage can be shipped.
Containerized Shipments: Sugar in ocean shipping containers is accepted between September 1st and 20th.This flexible approach to shipment types aims to maximize logistical efficiency and ensure timely delivery.
Pakistan’s Sugar Trade: A Shifting Landscape
The increased urgency in securing sugar imports comes against a backdrop of significant changes in Pakistan’s sugar trade dynamics. 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 dramatic increase compared to FY24, where only 33,101 tonnes were exported, earning a mere $21 million.
This surge in exports, however, appears to be contributing to the current domestic price pressures, prompting the government’s intervention.
Government Intervention and Market Concerns
The Pakistani government is taking a multi-pronged approach to stabilize sugar prices. This includes:
Strict Stock Monitoring: Enhanced oversight of sugar stocks across the country.
Exit Control List (ECL): Placement of unidentified mill owners on the ECL to prevent potential market manipulation. Competition Commission of Pakistan (CCP) Investigation: A case is currently being heard by the CCP regarding alleged cartelization involving 79 sugar mills and the Pakistan Sugar Mills Association (PSMA).
Despite these efforts, traders remain “puzzled” by the overall sugar trade policy, suggesting a lack of clarity or consistency in the government’s approach. The combination of increased import tenders, export performance, and regulatory actions indicates a complex and evolving situation in the Pakistani sugar market.
The situation warrants close monitoring as the TCP evaluates bids and navigates the challenges of securing a stable sugar supply for the nation.