Pakistani state-owned company TCP on Monday issued an international tender to import 50,000 tons of white sugar but not to ‘restricted’ countries like India, an act described by the Indian sugar industry as “bad luck” in a neighboring country.
This is the third Pakistani trading tender (TCP) company floating on sugar imports. Previously, two tenders of 50,000 tons each had to be canceled mainly due to high rates.
Faced with a shortage of production, Pakistan is trying to import sugar with the aim of promoting domestic availability and keeping prices up to PKR 100 per kg.
Last week, there was a sudden hope for a reopening of trade between the two countries for sugar and cotton after Pakistan’s Economic Coordination Committee approved the importation of the two items from India. However, the Cabinet of the Government of Pakistan also followed up on the decision.
Releasing a new foreign tender for the import of 50,000 tons of white sugar, TCP has made it clear to international suppliers that “the burden (of white sugar) should not come from Israel or any restricted country.”
International suppliers must submit bids before April 14 and deliver goods to any port of Karachi, it said.
Commenting on the development, All India Sugar Trade Association (AISTA) Chairman Praful Vithalani said, “Unfortunately for Pakistan. Will you get sugar in terms of price, quality and speed at the lowest rate of Indian sugar goods?”
In Pakistan, importing white sugar from India would be more expensive and faster on a global route compared to other countries, he told PTI. “With the international route passing through the Punjab, white sugar would cost about USD 398 per ton (including goods and delivery to godown),” he added.
According to AISTA, TCP had previously rejected two tenders for importing sugar due to high rates. The lowest bid he received was almost USD 540 per ton by Al Khaleez, Dubai.
Pakistan, which expects production of 5.6 million tons of sugar in the ongoing marketing year 2020-21 (October-September), is facing a shortfall of 5,00,000 tons, according to Pakistani traders
While India, the world’s second-largest producer of sugar after Brazil, sits in residual stock and aims to export six million tons in the ongoing 2020-21 marketing year.