Key points
- The Trading Corporation of Pakistan is offering 108,000 metric tonnes of white refined sugar for international export.
- A previous tender issued in September was scrapped after receiving zero bids due to a strict minimum reserve price.
- International buyers and exporters can now submit offers without any reserve price set for the stock.
Faced with an unsold mountain of surplus sweetener, state-run traders are dropping financial barriers to clear warehouses before the next harvest arrives, according to a Business Recorder report.
Key Details
According to Business Recorder, the Trading Corporation of Pakistan has floated a fresh international tender for 108,000 metric tonnes of white refined sugar. The entire stock is currently stored at the Pipri Godown in Karachi.
The available commodity consists of two distinct varieties, as reported by Business Recorder: 96,000 tonnes of fine-grain sugar and 11,086 tonnes of medium-grain sugar. Foreign buyers, authorised representatives, and exporters are invited to submit bids for either or both varieties. The tender stipulates a minimum lot size of 10,000 tonnes for the fine-grain variety and 11,086 tonnes for the medium-grain variety.
Context and Impact
This marks the second attempt by the state-run grain trader to offload the surplus commodity, following federal government approval, as detailed by Business Recorder. The initial tender launched in September failed to attract a single bid because the minimum reserve price was set too high at USD 660 per metric tonne. With the new tender carrying no reserve price, authorities hope to entice international buyers and successfully export the surplus stocks before new sugar production enters the market.
Summary and What Next
Bidders now await the outcome of this revised tender as the Trading Corporation of Pakistan moves forward without price restrictions. Further details regarding successful bids or buyer participation have not yet been announced.