TCP tenders to import 100,000 tons of white sugar

KARACHI: State-run Trading Corporation of Pakistan (TCP) issued a tender to import 100,000 tons of white sugar from global sources to cool high local prices, an official said on Saturday.

Last date to submit the bids is September 15, 2020 against the tender issued on September 11, 2020.

“The TCP has invited sealed bids from the international sugar suppliers and manufacturers for the supply of 100,000 metric tons white sugar (bagged cargo) through their local offices or representatives (registered with the provincial / federal tax authorities) having capacity to supply ‘White Sugar’ through worldwide sources,” the tender document said.

The country had been exporting sugar until earlier this year, but faced shortages of the sweetener and subsequent price spiral after production fell below annual demand in the last production year. The price has risen sharply after an export scandal.

The government in July allowed the import of 300,000 tons of sugar “to maintain strategic reserves, stabilise prices of sugar and prevent any possible shortfall at the end of this crop year 2019-20.

The government also exempted sugar import from withholding tax and 17 percent sales tax in a bid to lower its domestic prices.

The Ministry of National Food Security and Research (MNFSR) sees total annual consumption of sugar would be 5.3 million metric tons on the basis of per month consumption of 0.442 million metric tons

The ministry calculated this consumption on the basis of 25 kilogramme/capita consumption in the country.

The TCP on August 7 issued an international tender for import of 300,000 tons of sugar.

However response from international bidders was poor. Some five bidders had participated in the tender but only two parties showed interest in the supply of sugar while the remaining suppliers submitted regret letters.

Then, the lowest bid offered to supply sugar at $471/ton for DPO (Delivered at Place Unloaded), $459/ton for bulk and $453/ton for containerised shipment. The second lowest bid offered was $474/ton in bulk.

Subsequently the TCP issued another international tender to import 100,000 tons on September 2 for which the offers were opened on earlier this week Tuesday.

The lowest bid this time came to $459/ton, which will be processed to decide whether or not to accept it keeping in view the offered terms and conditions.