Documents reveal that the Trading Corporation of Pakistan (TCP) rejected bids from two companies for importing 200,000 metric tons of sugar despite their lower prices, citing deficiencies in the submitted documentation. Out of five bidders, TCP approved the offers of two companies that had submitted higher-priced tenders.
London-based M/s ED&F Man Sugar Limited submitted the lowest bid, offering 100,000 metric tons of sugar to Karachi Port at $539 per metric ton, but TCP dismissed it over documentation issues. The second-lowest bid, from German company Bare Syndicate FZCO at $555 per metric ton for small- and medium-grain white sugar, was similarly rejected due to shortcomings in paperwork.
Meanwhile, Swiss firm Louis Dreyfus offered $580.75 per metric ton for small-grain sugar, and Dubai-based Al Khaleej Sugar quoted $586 per metric ton for medium-grain sugar. Both bids were accepted and declared successful. Another Dubai-based company, Sucden Middle East, withdrew its documents and opted out of the tender process.
The tender notification specifies that shipments will occur either in two consignments of 25,000 metric tons each or one consignment of 50,000 metric tons between September 5 and September 20, with the full 200,000 metric tons scheduled to arrive in phases by October 15.
To meet domestic demand and stabilize sugar prices, the government has also established Letters of Credit (LCs) through SOCAR Trading for importing 85,000 metric tons. All LCs have been officially opened and transmitted through the relevant banks, with the first consignment expected to arrive at Pakistani ports in the coming weeks.
The government’s measures aim to bolster domestic sugar reserves and prevent potential shortages or unusual price fluctuations in the near term.
