TCP to buy 30,000 tons of sugar for Tajikistan
December 04, 2012
Trading Corporation of Pakistan (TCP) has planned to procure 30,000 tons of white powder sugar for export purposes. Sources told Business Recorder on Monday that Tajikistan, which had already finalised a surge import deal with Pakistan, is demanding white powdered sugar instead of white refined sugar. Domestic sugar mills mainly produce only white refined sugar as there is no demand of powdered sugar in the country.
White powdered sugar is also not available in the TCP”s stocks. During last two years, TCP had procured some 678,000 tons of sugar from domestic mills and the whole sugar is white refined variety. On August 14, 2012, Pakistan and Tajikistan reached on a sugar export deal in presence of Nurmahmad Akhmedov, Chairman Agency on State Material Reserves of Tajikistan, and Pakistan”s Minister for Commerce, Makhdoom Amin Fahim.
During the meeting it was also decided that sugar will be exported through state-run grain trader – TCP. As per initial discussions, Pakistan will supply 30,000 metric tons of sugar to Tajikistan some 20 dollars lower than the international market rates. The estimated export rate will be $528 per metric ton as on the day of dialogues sugar price in the world market stood at $548 per tons.
Earlier, Tajikistan was asking for sugar delivery in September 2012, however it was delayed due to some problems on the transportation side. While, now the transport movement on Tajikistan border is not possible due to snow falling. Sources said talks on sugar export are still in the process with Tajikistan and now they have demanded white powdered sugar, which is not available with TCP. Therefore, with an aim to completing sugar export deal with Tajikistan, TCP has decided to procure powdered sugar from domestic mills.
TCP has invited bids from interested sugar mills for supply of 30,000 metric tons of white powdered sugar in bags. According to TCP”s tender, to be issued today, a mill can submit bid for a minimum quantity of 5,000 metric tons and less than this quantity, no bid will be accepted by the Corporation. As per the condition, sugar should be packed in polypropylene bags with inner liner and is to be delivered through TCP”s nominated export points or warehouses as per schedule.
In addition, quality of white powdered sugar should be in accordance with standard and specification prescribed by Pakistan Standard & Quality Control Authority and relevant trade policy. Sources said the TCP has planned to open the tender on December 19, 2012 and complete procurement by end of this month with an aim to start sugar export as soon as roads are open. They said it has already been decided that point for delivery for sugar export will be Amangarh, district Nowshera, Khyber Pakhtunkhawa (close to Torkham Border). The TCP will be responsible for delivery of the commodity at Amangarh. While, from Amangarh to Dushanbe (Tajikistan Boarder) will be handled by Tajikistan.