Pakistan buys 75,000T sugar in Aug 29 tender

ISLAMABAD: Pakistan bought 75,000 tons of sugar at $638 a ton in a tender that closed on August 29, the state-run Trading Corporation of Pakistan (TCP) said on Wednesday, a day after the government approved another 100,000 tons of sugar imports.

“The contract has been awarded to Al-Khaleej for 75,000 tons at $638 a ton,” a TCP spokesman said, referring to a company based in the United Arab Emirates.

Five bids were received, with Al-Khaleej offering the lowest and another company, Bunge, the highest offer at $671.45 a ton for a 25,000 ton consignment, said a sugar trader who declined to be identified.

ED&F Man offered $643.50/ton for 25,000 tons; Cargill $644/ton for 50,000 tons; and LDC $644.10 for 50,000 tons, the trader said.

On Tuesday, the Economic Coordination Committee (ECC), the government’s highest economic decision-making body, approved another 100,000 tons of sugar to be imported to “meet any emergent demand of sugar in near future”.

The decision to import sugar came after domestic prices increased ahead of the Muslim fasting month of Ramadan that began on August 23.

Pakistan had already bought 125,000 tons of white sugar after a decision in February to import 200,000 tons to meet demand and keep a check on prices.

Output fell to an estimated 3.2 million tons in the 2008/09 crop compared with 4.7 million tons the previous year.

The government has also decided to import 300,000 tons of raw sugar, but a senior government official said it would not be before December. Link...