Pakistan to buy white sugar from Dubai
Deal to be inked on basis of deferred payments
Karachi: Pakistan may buy 650,000 metric tonnes of white sugar from Dubai on the basis of deferred payments, according to Saeed Ahmad Khan, chairman, Trading Corporation of Pakistan.
"We hope to finalise this within the next week-and-a-half," Khan said in an interview at his Karachi office yesterday. "We have a shortage of funds so we have to go for deferred payments."
The London price is expected to be the benchmark for the deal, Khan said. White sugar for May delivery rose 90 cents to $619.50 metric tonne on the Liffe exchange yesterday.
The ministry of finance has formed a committee to evaluate the proposal and they will present their report on March 8, Khan said.
Pakistan bought 50,000 tonnes of white sugar from Singapore's Agro Corp. at $779.95 a tonne on February 24.
It also bought 50,000 tonnes, less than the 200,000 tonnes sought, from Sadan General Trading of Dubai at $585 a tonne in a February 15 tender.
Tender scrapped
The country February 11 scrapped a tender for 150,000 tonnes after a dispute with the lowest bidder. It also cancelled a contract for 200,000 tonnes on February 22, and on the same day called bids for a matching volume asking supplier to bid by March 21.
Pakistan requires a total 1.2 million tonnes to bridge a gap in supplies that has pushed prices to near a record. It plans to import 500,000 tonnes by mid-May by inviting bids, Khan said.
