Pakistan: TCP sugar export tender draws no bids at $660 reserve price
Pakistan’s TCP tender to export 107,739 tonnes of imported refined white sugar received no bids, as its $660/tonne reserve price exceeded international prices of $505–515. The government intended to clear surplus stocks imported for domestic demand before the November crushing season, but the price gap made exports commercially unattractive.
The Trading Corporation of Pakistan’s (TCP) tender to export 107,739 metric tonnes of imported white refined sugar failed to attract a single bid, as its minimum reserve price of $660 per tonne remained significantly above prevailing international prices.
The state-run grain trader had floated the tender on September 6 on the federal government’s directives, offering the sugar on an ex-works basis from TCP’s Pipri Godown in Karachi. The tender was opened on September 30 but received no bids.
TCP set a uniform reserve price of Rs184,800 per metric tonne, equivalent to $660 per tonne at an exchange rate of $1 to Rs280, for all 11 lots offered under the tender. The combined reserve value of the 11 lots stood at Rs19.91 billion, or $71.1 million.
International prices for white refined sugar, however, were around $505 to $515 per metric tonne, leaving TCP’s reserve price at least $145 per tonne above the upper end of the prevailing global price range.
The gap made the tender commercially unattractive for potential exporters and companies, resulting in no participation despite TCP relaxing its security deposit requirements.
The sugar being offered for export was imported last year to meet domestic demand. With supplies now in surplus, the government planned to dispose of the excess stocks before the next crushing season begins in November.
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Source : Profit by Pakistan Today
