HAMBURG: Pakistan has opened an international tender to export 107,739 metric tons of white refined sugar, as the government looks to reduce surplus stocks and ease pressure on the domestic sugar industry, European traders said on Monday, Sept. 7. The tender was issued by the state-run Trading Corporation of Pakistan (TCP), with price offers due by Sept. 28.
The sugar being offered for export comes from stocks imported by Pakistan last year. Traders said the sale is aimed at reducing excess government-held supplies after the country brought in large quantities of sugar to meet domestic needs. The tender follows a decision by the Economic Coordination Committee (ECC) on Aug. 20 to seek international bids for the export of about 108,000 tons of surplus sugar held by the TCP.
The current stock is part of the 300,000 tons of sugar imported last year after a recommendation from the Steering Committee on Sugar, which was formed with approval from the Federal Cabinet. The tender process will follow the Public Procurement Regulatory Authority Rules, 2004.
The move comes as the Pakistan Sugar Mills Association (PSMA) has repeatedly urged the government to allow sugar exports. The association says large inventories and weak prices are putting financial pressure on sugar mills and sugarcane growers. On Aug. 13, the association sent its third letter to National Food Security and Research Minister Rana Tanveer Hussain, warning that sugar mills could face a liquidity shortage before the next crushing season. It also called for immediate approval to export excess stocks.
According to the association, Pakistan held 3.171 million tons of sugar as of July 31. With average monthly domestic consumption estimated at 564,196 tons, the industry calculated that about 1.974 million tons would be needed to meet local demand through Nov. 15.
That would leave an estimated 1.197 million tons of sugar in stock when the next crushing season begins, according to the association. PSMA has argued that exporting the excess sugar could help lower stockpiles, improve cash flow for the industry and reduce pressure on sugar mills and growers. However, the TCP tender is limited to government-held sugar imported previously. It does not cover the broader surplus held by Pakistan's domestic sugar industry.
