Pakistan’s Sugar Export Plan at Risk Over High $660 Reserve Price

As the minimum rate is substantially higher than prevailing international market rates, the Trading Corporation of Pakistan's $660 per ton reserve cost for its sugar export tender could produce it tough to attract bidders.

Key points

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• The international cost of white refined sugar is at present around $510 to $520 per metric ton.
• Although bids must be submitted in dollars per metric ton, bidders can enter the equivalent cost in rupees through the e-Pak Acquisition & Disposal System.
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• The bid will remain valid for 10 working days from the date of opening.

After federal administration directives, seeking bids for the export of 107, 739 metric tons of imported white refined sugar stored at its Pipri Godown in Karachi, TCP issued the tender on September 6, 2026. The sugar had been imported last year to prevent a shortage in the domestic market.

Notably, the reserve cost has been set at Rs. 184, 800 per metric ton, equivalent to $660 at an exchange rate of Rs. 280 per dollar. The same cost applies to all 11 lots, giving the tender a total reserve value of Rs. 19.91 billion, or regarding $71.1 million. Bill Gates Has Major Aims for Pakistan Agriculture.

Meanwhile, the international cost of white refined sugar is at present around $510 to $520 per metric ton. This puts TCP's reserve cost at least $140 per ton above the lower end of prevailing international costs, potentially discouraging bidders from participating.

Although bids must be submitted in dollars per metric ton, bidders can enter the equivalent cost in rupees through the e-Pak Acquisition & Disposal System. Payment under the tender must ultimately be created in foreign exchange through banking channels.

TCP has extended the bid submission deadline by two days to 3 p.m. On September 30, from the earlier September 28 deadline. It has additionally reduced the required earnest capital from 10 percent to 2 percent to encourage greater participation. The security requirement has consequently fallen from Rs. 184.8 million to Rs. 36.96 million per lot. Pakistan, Bangladesh to Boost Agriculture Cooperation.

For context, the successful bidder will have to create full payment either in advance or through a letter of credit at sight in foreign exchange and lift the entire awarded quantity within 45 days of the contract award.

TCP will charge carrying costs of Rs. 2 per kilogram per month on unpaid and unlifted sugar. The corporation may additionally cancel the contract and forfeit the performance guarantee if the successful bidder fails to meet the lifting requirement.

Meanwhile, the bid will remain valid for 10 working days from the date of opening. While the successful bidder's security will be retained as a performance guarantee under the applicable PPRA rules, earnest funds deposited by unsuccessful bidders will be returned after the contract is awarded. Stay Connected with ProPakistani.

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