Govt Fails to Find Buyers for Surplus Sugar

As the government's reserve cost was significantly higher than prevailing international market costs, a sugar export tender floated by the Trading Corporation of Pakistan (TCP) has received no bids.

Key points

• TCP had invited bids for the export of 107, 739 metric tons of imported white refined sugar on an Ex Works TCP Pipri Godown Karachi basis.
• Pakistan's Sugar Export Plan at Risk Over High $660 Reserve Cost.
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• The gap of around $145 to $155 per metric ton between the reserve cost and international market costs created the tender commercially unattractive to potential bidders.
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TCP had invited bids for the export of 107, 739 metric tons of imported white refined sugar on an Ex Works TCP Pipri Godown Karachi basis. The tender was opened on September 30, 2026.

While the prevailing international cost of white refined sugar was around $505 to $515 per metric ton, the administration had set a uniform reserve rate of $660 per metric ton. Pakistan's Sugar Export Plan at Risk Over High $660 Reserve Cost.

Meanwhile, the reserve cost was set at Rs. 184, 800 per metric ton, based on an exchange rate of Rs. 280 per dollar. The total reserve value of the 11 lots was Rs. 19.91 billion, or $71.1 million.

Meanwhile, the sugar was imported last year to meet domestic demand but is now in surplus. The administration planned to export the stocks before the start of the next crushing season in November.

Notably, the gap of around $145 to $155 per metric ton between the reserve cost and international market costs created the tender commercially unattractive to potential bidders.

TCP had additionally reduced the earnest capital requirement from 10 percent to 2 percent to encourage participation. Nevertheless, the relaxation failed to attract a single bid for the surplus sugar. Stay Connected with ProPakistani.

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Taken together, the developments around govt Fails to Find Buyers for Surplus Sugar point to a situation that is still moving, and the coming days should bring more clarity.