KARACHI: The sugar export tender floated by the Trading Corporation of Pakistan (TCP) has failed to attract even a single bid, mainly due to the condition of a high minimum reserve price of USD660 per metric ton. The state run grain trader, on the directives of the federal government, on September 6, 2026 issued a tender for the export of 107,739 metric tons of imported white refined sugar on an Ex-Works TCP Pipri Godown Karachi basis.
The sugar was imported last year to meet domestic demand. However, with the commodity now in surplus, the government planned to export the excess stocks before the start of the next crushing season in November.
As per tender terms and conditions, bidders were required to submit their bids in USD per metric ton. However, only for the purpose of bidding through the e-Pak Acquisition & Disposal System (EPADS), bidders were allowed to submit bids in PKR per MT on EPADS after converting the USD per MT price at the rate of 1USD = PKR 280. The transaction under the tender must be done in Foreign Exchange (in equivalent USD) through banking channels only.
TCP has announced a uniform reserve price of PKR 184,800 per metric ton, equivalent to USD660 per metric ton, for all 11 lots, based on an exchange rate of USD1= PKR 280. The total reserve value of the 11 lots stands at PKR 19.91 billion, or USD71.1 million.
While, the prevailing international price of white refined sugar is currently around USD505 to USD515 per metric ton. Since reserve price announced by the government was significantly higher than the prevailing global market price, no bidder participated in the sugar export tender, which was opened on Sep 30, 2026.
The high reserve price set for sugar exports discouraged potential bidders from participating in the tender and as a result not a single bid was received for the export of sugar. The TCP’s reserve price is at least USD 145 per metric ton higher than prevailing international prices for white refined sugar.
The gap of up to USD 140-145 per metric ton between the TCP’s reserve price and prevailing international market rates has made the tender commercially unattractive for companies and exporters, effectively discouraging their participation.
In order to encourage greater participation in the bidding process, the state-run grain trader amends the tender and reduced the earnest money requirement. The security deposit was cut from 10 percent to 2 percent. Initially, bidders were required to submit earnest money equivalent to 10 percent of the value of each lot, amounting to a minimum security deposit of Rs184.8 million per lot. However, despite this relaxation, the sugar export tender was failed to attract a single bid for the surplus sugar.
Copyright Business Recorder, 2026
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