RIZWAN BHATTI

KARACHI: The Trading Corporation of Pakistan (TCP) has invited fresh bids from international buyers and exporters for the export of 108,000 metric tonnes of white refined sugar imported in 2025, without fixing any reserve price, with the entire stock currently lying at its Pipri Godown in Karachi.

The move follows the federal government’s approval allowing TCP to export the surplus sugar stocks. This is the second export tender issued by TCP, as the first tender was scrapped after no bids were received.

The first sugar export tender issued by TCP in September failed to attract a single bid, mainly due to the high minimum reserve price of USD 660 per metric tonne. Consequently, with the approval of the federal government, TCP has issued the second sugar export tender without setting any reserve price in an effort to attract international buyers and exporters and export the surplus commodity before the arrival of new sugar production.

The state-run grain trader has issued its second international tender for the export of 108,000 metric tonnes of imported white refined sugar, inviting foreign buyers, their authorised representatives and exporters to submit bids for the purchase of the sugar in full or partial quantities.

According to the tender, the available stock comprises 96,000 tonnes of fine-grain sugar and 11,086 tonnes of medium-grain sugar. Bidders can offer prices for either or both varieties, subject to a minimum lot size of 10,000 tonnes for fine-grain sugar and 11,086 tonnes for medium-grain sugar.

TCP has set November 13, 2026, as the deadline for submission of bids by 11:00 am, while the bids will be opened at 11:30 am at its principal office in Karachi. A pre-bid meeting has also been scheduled for November 11.

TCP has set a minimum bid quantity of 10,000 metric tonnes for fine-grain sugar and 11,086 metric tonnes for medium-grain sugar, while bids validity will be seventy-two (72) working hours from bid submission deadline.

Under the tender terms, bidders are required to quote separate prices in US dollars per metric tonne for medium and fine-grain sugar on an Ex-Works basis, excluding loading and transportation costs, which will be borne by the buyers. However, all applicable taxes, levies and duties, including sales tax and further tax where applicable, will also be payable by the successful bidders along with the export value.

TCP has offered two payment options: full advance payment of the contract value in foreign currency into its designated bank account or an irrevocable Letter of Credit (LC) payable at sight. All banking, confirmation, amendment and clearance charges will also be borne by the buyers.

Successful bidders will be required to make full advance payment in foreign currency into TCP’s designated bank account or provide an irrevocable Letter of Credit payable at sight before the issuance of a Delivery Order.

The buyers will also be responsible for arranging the transportation and lifting of the awarded quantities within a maximum period of 90 days after the acceptance of bid. TCP may impose storage and demurrage charges if buyers fail to lift the stocks within the stipulated timeframe.

According to the tender documents, the sugar stocks were surveyed and tested by Bureau Veritas in September 2026. Prospective buyers have been allowed to inspect the stocks at Pipri Godown on working days between 10:00 am and 4:00 pm until the bidding deadline.

TCP will evaluate bids based on eligibility, compliance with tender requirements, offered prices and quantities. The corporation may allocate the available stocks among one or more successful bidders and reserves the right to accept or reject any or all bids.

According to TCP, bidders who have outstanding contractual obligations or unpaid dues to TCP will not be eligible unless they clear their liabilities before the bid opening. Firms facing blacklisting proceedings will also be barred from participating.

It may be mentioned here that previously, the high reserve price set for sugar exports discouraged potential bidders from participating in the first sugar export tender and as a result not a single bid was received for the export of sugar.