5 days ago
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- Business Recorder
Sugar tender: TCP receives 4 bids
KARACHI: The Trading Corporation of Pakistan (TCP) has received bids from four companies, quoting prices between $539 and $586 per metric ton, for the import of 100,000 tons of sugar aimed at stabilizing prices of this essential commodity in the country.
However, after evaluating the bids, the bids evaluation committee has declared the two lowest offers non-responsive, while the remaining two bidders were found to be responsive.
The TCP on August 2, 2025 invited sealed bids from the international suppliers, having capacity to supply 100,000 metric tons 'White Refined Sugar' through worldwide sources on CFR Karachi basis.
Pakistan gets offers in 100,000 metric tons white sugar tender, traders say
The bids were opened on Monday, and TCP conducted the bidding with live streaming on TV. In response to the TCP's tender, four companies submitted offers for the supply of sugar, while one company, Sucden Middle East UAE, submitted a regret letter.
The lowest bid was submitted by ED&F Man Sugar Limited, London, at $539 per metric ton for supply of 50,000 metric tons of small fine grade sugar. The offer was for sugar of any origin, excluding India, Israel, or any other sanctioned country. However, after bids evaluation the TCP has declared lowest bid non-responsive due to conditional terms.
The second-lowest bid was received from Bare Syndicate, offering $555 per metric ton for 25,000 metric tons of small fine grade sugar and $550 per metric ton for 25,000 metric tons of medium grain sugar, both of Brazilian origin. However, these bids was also declared non-responsive by the TCP's evaluation committee due to short of required documents and bid security.
The third-lowest bid was offered by Louis Dreyfus at $580.75 per metric ton for 25,000 metric tons of small fine grade sugar. The proposed origins included Thailand, Malaysia, Vietnam, Australia, Brazil, Saudi Arabia, UAE, Algeria, Morocco, and Indonesia. The bid was found responsive.
State run grain trader received, the fourth bid from Al Khaleej Sugar at $586 per metric ton for supply of 30,000 metric ton of medium grain sugar from the UAE. The bid was also declared responsive.
This was the third sugar import tender by the TCP in the last one month, as previous two tenders were scrapped due to high bids. The TCP bids evaluation committee comprised Muhammad Ali, General Manager Finance & Accounts and Chief Financial Officer; Zafarullah Zingajo, Head of the Internal Audit Division; and Sheeraz Ali, General Manager Dispatch and Port Operations.
It may be mentioned here that in order to stabilize the rising sugar prices and avoid shortage on the domestic market, the federal government has decided to import the commodity.
The Federal Board of Revenue (FBR) has already exempted customs duty on the import of 0.5 million tons sugar and also reduced sales tax rate from 18 percent to 0.25 percent and withholding tax up to 0.25 percent on the import of commodity by the TCP or private sector.
Following the export of sugar during the last fiscal year, domestic sugar prices have been on the rise, reaching up to Rs 200 per kilogram compared to less than Rs 140 per kilogram at the time of export.
Copyright Business Recorder, 2025
