Key Takeaways
- TCP’s $660 per ton reserve price for sugar exports is higher than international market rates.
- The tender seeks bids for 107,739 metric tons of imported sugar.
- Bidders must submit in dollars but can enter equivalent price in rupees.
The Trading Corporation of Pakistan (TCP) faces a significant challenge in its sugar export plan due to the high reserve price set at $660 per metric ton, which is substantially above the current international market rates of $510 to $520 per metric ton.
TCP issued a tender on September 6, 2026, for the export of 107,739 metric tons of imported white refined sugar stored at its Pipri Godown in Karachi. The sugar was imported last year to prevent a domestic sugar shortage.
The reserve price has been set at Rs. 184,800 per metric ton, equivalent to $660 at an exchange rate of Rs. 280 per dollar. The tender covers 11 lots, with a total reserve value of Rs. 19.91 billion, or approximately $71.1 million.
This high reserve price could discourage bidders, as it is at least $140 per ton above the lower end of prevailing international prices. Bidders must submit their bids in dollars per metric ton, but can enter the equivalent price in rupees through the e-Pak Acquisition & Disposal System.
To encourage greater participation, TCP has extended the bid submission deadline by two days to 3 p.m. on September 30, from the earlier September 28 deadline. The required earnest money has been reduced from 10 percent to 2 percent, falling from Rs. 184.8 million to Rs. 36.96 million per lot.
The successful bidder will have to make full payment either in advance or through a letter of credit at sight in foreign exchange and lift the entire awarded quantity within 45 days of the contract award. TCP will charge carrying costs of Rs. 2 per kilogram per month on unpaid and unlifted sugar.
The corporation may also cancel the contract and forfeit the performance guarantee if the successful bidder fails to meet the lifting requirement. The bid will remain valid for 10 working days from the date of opening.
Earnest money deposited by unsuccessful bidders will be returned after the contract is awarded, while the successful bidder’s security will be retained as a performance guarantee under the applicable PPRA rules.
