TCP to float 100,000 tons sugar import tender this week

ISLAMABAD (Reuters) - The Trading Corporation of Pakistan (TCP) is to issue a tender to import 100,000 tonnes of sugar, probably this week, TCP Chairman Saeed Ahmed Khan said on Monday.
Pakistan is already in the market for 75,000 tonnes of white sugar through a tender that will close on Aug 29, after domestic prices of sweetener increased in the market ahead of Ramazan.
We will finalise a tender for 75,000 tonnes of sugar this week and will also issue another tender for 100,000 tonnes, Khan told.
He said tender was likely to be issued this week: Were now just waiting for a formal directive from the government.
Pakistan had already bought 125,000 tonnes of white sugar this year after a decision in February to import 200,000 tonnes of it to meet demand and keep a check on prices after output fell to an estimated 3.2 million tonnes in the 2008/09 crop compared with 4.7 million tonnes the previous year.
The government last week also decided to import 300,000 tonnes of raw sugar to meet possible shortages as it and industry officials expect Pakistans 2009/10 crop to be little more than 3 million tonnes, significantly less than demand.
The government has not said when it will import the raw sugar, but a senior Food Ministry official said, it would not be before December.
The decision to import raw and refined sugar comes as the government struggles to stabilise sugar prices after sharp rises in recent weeks.
The government blamed hoarders for trying to squeeze supplies to push up profits during Ramazan, when sugar consumption rises as people traditionally break their fasts with sweet food.
Authorities this month launched a crackdown on suspected hoarders and recovered thousands of bags of sugar from various parts of the country.
The government later held negotiations with sugar millers and fixed an ex-mill price of Rs45/kg compared with a market price of more than Rs50/kg.
The government has also decided to raise supplies to utility stores to 100,000 tonnes during Ramazan from a usual supply of 40,000 tonnes a month to be sold at Rs38/kg.
TCP Chairman Khan said his agency had already released the sanctioned 100,000 tonnes of sugar in bulk to utility stores to ensure smooth supplies during Ramazan.
He said the TCP still had a total of 120,000 tonnes of sugar in its stock which would be further augmented with the import of more sugar.
An industry official said, overall sugar stocks were 1.2 million tonnes.
Annual sugar consumption fluctuates between 3.6 million and 4.2 million tonnes, but industry officials say it has gone down since October, because of higher prices and an economic slowdown that resulted in lower demand from industries such as drink producers.
The sugar harvest begins at the end of November and lasts up to March.