State-run Taiwan Sugar Co, the island's sole refiner, passed on a tender for 2,000 tonnes of refined sugar due to high prices, said a company executive on Thursday.
The company was aiming to plug a shortfall in supply as demand rises during the summer months when sales of sweetened drinks rise, while production capacity is reduced due to mill closures, said the executive who declined to be identified.
"We usually import around 10,000 to 20,000 tonnes of refined sugar every year if we need it," said the executive.
But the prices offered after adding the 17.5 percent tariff made the purchase uneconomical, said the executive, adding that no decision had been made on re-tendering for the shipment.
The delivery schedule had been set for between May and June, said the executive.
Taiwan Sugar has been closing down sugar mills over the past few years as it diversifes out of its unprofitable sugar business and into gas stations, biotechnology and real estate development ahead of planned privatisation.
It currently operates four mills, down from six in 2003 and one refinery which can process 300,000 tonnes of raw sugar per year. Taiwan is expected to further open its market to refined sugar imports in coming years.