Sugar Export: TCP Reopens Bidding for 108,000 Tonnes Without Reserve Price

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 imported white refined sugar, this time without setting a minimum reserve price, in an effort to attract buyers for the surplus stocks.

The entire stock is currently stored at TCP’s Pipri Godown in Karachi. The move follows federal government approval to export the surplus sugar imported in 2025.

This is TCP’s second attempt to sell the sugar internationally after its first tender, issued in September, failed to attract any bids. The earlier tender had set a minimum reserve price of $660 per metric tonne, which reportedly discouraged potential buyers from participating.

With government approval, TCP has now removed the reserve price to make the offer more attractive to international buyers and facilitate the export of surplus stocks before the arrival of the new sugar production season.

Under the latest international tender, foreign buyers, their authorised representatives and exporters can submit bids for the purchase of the sugar in full or partial quantities.

According to the tender documents, the available stocks include 96,000 tonnes of fine-grain sugar and 11,086 tonnes of medium-grain sugar. Bidders may submit offers for either or both varieties, subject to minimum quantities 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 bid submission, with offers due by 11:00 am. The bids will be opened at 11:30 am at the corporation’s principal office in Karachi. A pre-bid meeting is scheduled for November 11.

Bids will remain valid for 72 working hours after the submission deadline. Participants must quote separate prices in US dollars per metric tonne for fine-grain and medium-grain sugar on an Ex-Works basis. Loading and transportation costs will be the buyers’ responsibility.

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Successful bidders will also have to pay all applicable taxes, levies and duties, including sales tax and further tax where applicable, in addition to the export value.

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

Successful bidders must complete payment or provide the required LC before TCP issues a Delivery Order.

Buyers will be responsible for arranging transportation and lifting their allocated quantities within 90 days of bid acceptance. TCP may impose storage and demurrage charges if buyers fail to remove the stocks within the stipulated period.

The tender documents state that Bureau Veritas surveyed and tested the sugar stocks in September 2026. Prospective buyers can inspect the stocks at Pipri Godown on working days between 10:00 am and 4:00 pm until the bidding deadline.

TCP will assess bids based on eligibility, compliance with tender conditions, offered prices and quantities. The corporation may distribute the available stocks among one or more successful bidders and retains the right to accept or reject any or all offers.

Companies with outstanding contractual obligations or unpaid dues to TCP will not qualify unless they clear their liabilities before the bids are opened. Firms facing blacklisting proceedings will also be barred from participating.

The latest tender marks TCP’s renewed effort to dispose of surplus imported sugar after the previous auction failed to secure buyer interest under the $660-per-tonne reserve price requirement.