TCP sugar export tender draws no bids as $660 reserve price exceeds global rates

No bids came in for a state tender to sell 107,739 tonnes of imported white refined sugar, according to Profit by Pakistan Today. The Trading Corporation of Pakistan issued the tender on September 6 under instructions from the federal government and opened it on September 30. The sugar was offered ex-works from the corporation's Pipri Godown in Karachi.

Each of the 11 lots carried the same reserve price of Rs184,800 per tonne, which works out to $660 when the dollar is priced at Rs280. Taken together, the lots had a reserve valuation of Rs19.91 billion, equal to $71.1 million. Global quotes for white refined sugar, however, were roughly $505 to $515 per tonne, leaving the floor at least $145 above the top of that range.

The price gap made the offer unattractive to exporters and companies, so none took part even though TCP loosened its security deposit requirements. The sugar had been imported last year to meet domestic consumption, but supplies have since moved into surplus. The government plans to sell off the surplus before the crushing season starts in November.