sugar demand

By Arshad Hussain

KARACHI: The Trading Corporation of Pakistan (TCP) on Saturday awarded 75,000 metric tons of refined sugar import tender to M/s Meshe International and M/s Shanig Associates.

The Corporation as per direction of the central government is importing sugar in the country through international tender. In an effort to provide cheap sugar to the general public, the Corporation is supplying this sugar to the government’s Utility Stores throughout the country.

A TCP official said: “Of the five bidders, M/s Meshe international quoted the lowest bid of $510 per metric ton and the second lowest bidder was M/s Shanig Associates.

According to an official statement, the Corporation bargained with the bidders and successfully got a price of $509 per metric ton. M/s Shanig Associates also agreed to match this rate and expressed willingness to supply 25,000 MT of sugar to the Corporation.

The official said the qualificated bidders short-listed by the Corporation were genuine traders and suppliers.

Last month, Pakistan bought 50,000 tons of refined sugar at $478 a ton from Indian sugar company Exim Corp.

Last year, the Pakistani government imported 200,000 tons of refined sugar from various sources to build up its stocks and stabilize domestic prices.

Domestic refined sugar production in the 2006-07 season is estimated at 2.89 million tons, whereas domestic sugar requirement is estimated at 3.8 million tons, a report said.

The government has allowed the private sector to import sugar from anywhere in the world and it is being hoped that importers would bring a large quantity of sugar to bridge the growing supply-demand gap.

Analysts believe that Pakistan's sugar cane production in the 2005-06 season is likely to be short at around 46 million tons from 47 million tons in the last season.