PAKISTAN: White sugar prices for tender falling further
Published: 03/22/2010, 8:48:59 AM
The TCP sugar import tender for 200,000 metric tonnes that opened on Saturday saw offered prices falling further, according to Pakistan's The News International.
Al Khaleej Sugar Co, Dubai offered the lowest bid of US$596.10 a tonne for 200,000 tonnes while Agrocrop International, the second lowest bidder, offered US$607.95 a tonne for 25,000 tonne, said one of the officials for the bidders but requested not to be named.
Louis Dreyfus commodities, Suisse, SA the third lowest bidder also offered 100,000 tonnes with US$608.40 a tonne for 50,000 tonnes and US$614 a tonne for the remaining quantity in Saturday's tender, the same official added.
After not getting a positive response of the government-to-government deal of 700,000 tonnes sugar from UAE government, Al-Khaleej this time decided to bid far bellow its previous offer of US$850 a tonne, he said.
The Corporation has so far contracted the purchase of 150,000 tonnes of sugar in the last three tenders and awarded them to The Sadan General Trading, Dubai for 50,000 tonnes quantity at US$685 a tonne, Agrocrop International for 50,000 tonnes quantity at US$779.95 a tonne and again The Sadan General Trading, Dubai for 50,000 tonnes at US$649 a tonne.
With the awarding of Saturday's tender, a total amount of 350,000 tonnes sugar will be contracted by the Corporation and it still requires 150,000 tonnes quantity to build a strategic reserves of half a million tonnes.
"There will no harm if the expected tender of March 27 will be staggered and may be opened in the first week of April as the declining trend of the commodity in the international market will help the country to save the foreign exchange," an official of the commerce ministry said but requested not to be named told The News on Saturday evening.
Both the officials at the ministries of Industries & Production and Food & Agriculture have revised their total sugar production estimates from 3.2 million tonnes to 3.5 million tonnes now the crushing season is finished, an official of the MOIP not authorized to speak with the media said.
The sugar shortage in current season will be 700,000 tonnes as against the previous estimate of 1.2 million tonnes, the same official hoped adding that the Corporation will finalise the shipments in June.
"The sugar emergency in the country is over," an industry executive told this scribe.
The first ship carrying 25,000 tonnes of has left Brazilian port well before the time and will reach Karachi port in the next three weeks. Similarly the second ship loaded with 25,000 tonnes of sugar will set sail for Pakistan next week," he said.