Government Eyes More Sugar Purchases Amid CCP Probe
The Trading Corporation of Pakistan (TCP) has started importing sugar to ease price pressures, purchasing 30,000 tonnes in an international tender aimed at securing a total of 200,000 tonnes.
European traders reported on Tuesday that this first shipment was likely bought from Al Khaleej Sugar at an estimated $582.50 per tonne, including cost and freight.
The tender, which closed last week, invited sugar suppliers from across the globe, except India and Israel. Officials said the validity of other offers had been extended until Wednesday, suggesting more buying could follow.
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The government approved plans in July to import up to 500,000 tonnes of sugar to stabilize prices, which have been rising steadily since January. Analysts point to lower domestic output and stock management issues as reasons for the price surge.
TCP had already purchased around 55,000 tonnes in an earlier tender, bringing the total amount of sugar bought so far to roughly 85,000 tonnes. Market insiders expect further procurement in coming weeks to fill the remaining gap.
Meanwhile, the government has tightened its oversight of the sector, placing some mill owners on the Exit Control List and urging strict stock monitoring. The Competition Commission of Pakistan (CCP) is also investigating allegations of cartelization involving 79 sugar mills and the Pakistan Sugar Mills Association.
