The Trading Corporation of Pakistan’s tender to export 107,739 metric tonnes of imported white refined sugar received no bids, with the reserve price set well above prevailing international market levels.
TCP had issued the tender on federal government directives for the export of the sugar on an ex-works basis from its Pipri Godown in Karachi. The tender was opened on September 30, but no bidder participated.
A uniform reserve price of $660 per metric tonne, equivalent to Rs184,800 per tonne at the tender’s exchange rate of Rs280 to the dollar, applied across 11 lots. That put the combined reserve value at about $71.1 million, or Rs19.91 billion.
Business Recorder reported that international white refined sugar prices were around $505 to $515 per metric tonne, leaving TCP’s reserve price roughly $145 or more above the lower end of the prevailing range.
The price gap made the tender commercially unattractive for prospective buyers, according to the report. TCP had also reduced the earnest-money requirement from 10% to 2% in an effort to encourage participation, but the tender still received no bids.
The sugar being offered for export had previously been imported to meet domestic requirements. With stocks later moving into surplus, the government sought to sell the excess inventory before the next crushing season.
The tender formed part of a broader effort to manage surplus sugar stocks while maintaining domestic availability and price stability. The government had earlier authorised international tenders for the export of surplus sugar through TCP.
Under the tender terms, bidders were required to quote in US dollars per metric tonne. For bids submitted through the e-Pak Acquisition and Disposal System, the dollar price could be converted into rupees at the specified Rs280 exchange rate, while the transaction itself was to be settled in foreign exchange through banking channels.
The lack of bids means the 107,739-tonne stock was not sold through this tender round. Any subsequent disposal would depend on further decisions by TCP and the government, including whether the tender terms or reserve price are revised.