The Trading Corporation of Pakistan (TCP) has issued a fresh international tender to import 100,000 metric tons of white refined sugar, according to reports from European traders on Monday.
The move underscores the government’s urgency to stabilize sugar prices amid supply concerns and rising inflation. The deadline for submitting price offers under the new tender is August 11, giving suppliers just over a week to prepare bids.
According to international commodity traders, the latest tender suggests that no purchase will be made from Pakistan’s earlier tender, which also aimed to import 100,000 metric tons of sugar and closed on July 31. Only three companies reportedly participated in that bidding round, with the lowest offer submitted at $539 per ton on a cost and freight (C&F) basis.
The low participation and limited pricing options likely prompted the TCP to issue a new, more flexible tender with revised shipping conditions and a broader procurement window.
The government’s sugar import strategy follows a cabinet-level decision on July 8 to bring in 500,000 metric tons of sugar to ease price pressures in the local market. Since January, retail sugar prices across Pakistan have climbed steadily, creating hardship for consumers and raising concerns among policymakers.
The decision to import large volumes of sugar was meant to curb speculation, hoarding, and artificial scarcity, all of which have contributed to the domestic price surge. Market observers believe that the global tender route offers the most transparent mechanism to secure sugar at competitive international rates.
Before the July 31 round, Pakistan also floated a tender for 50,000 tons of sugar on July 22, but no bids were received. Traders cited logistical challenges, specifically the requirement for shipments to begin between August 1 and 15, as a major deterrent. The short notice made it impractical for suppliers to mobilize shipments, especially amid tight global shipping conditions.
Learning from this experience, the new tender offers multiple shipping options and broader timelines, potentially attracting more international interest.
The latest tender issued by the TCP outlines the following key requirements:
- Quantity: 100,000 metric tons of white refined sugar
- Sugar Grades: Acceptable forms include small/fine and medium grade
- Origin: Open to suppliers worldwide, excluding India and Israel
- Packaging: Sugar must be packed in bags and transported in either:
- Ocean shipping containers
- Breakbulk vessels
Shipment Schedule:
For Breakbulk Shipments:
- 50,000 tons between September 1 and 15
- Another 50,000 tons between September 10 and 25
For Container Shipments:
- Shipping window is September 1 to 20
All shipments must be arranged to ensure arrival in Pakistan by October 20 at the latest.
This staggered shipment plan not only allows for better logistical planning but also helps to smooth out supply influx, avoiding bottlenecks at ports or distribution centers.
Pakistan is currently navigating a difficult macroeconomic environment, with inflationary pressures stemming from fuel costs, import bills, and food commodity prices. In this context, importing sugar in a timely and cost-effective manner has become critical for the government’s economic management strategy.
The TCP’s proactive approach to issuing a new tender shows its intent to correct course and learn from past missteps. Analysts suggest that if the tender is successful, it could help bring stability to domestic sugar prices ahead of important religious and festival seasons when demand typically spikes.
Alongside sugar, Pakistan has also undertaken several initiatives to enhance food security and manage essential commodity prices, including:
- Importing wheat to build strategic reserves
- Subsidized utility store schemes for low-income households
- Crackdowns on hoarders and market manipulators
These actions reflect the state’s increasing involvement in commodity markets, driven by public pressure and inflation control mandates.
