Al-Khaleej Sugar Co, the Dubai-based refinery, has secured a contract to supply 205,000 metric tons of white sugar to Pakistan’s state-backed Trading Corp.
Al-Khaleej, which is the world’s largest standalone refinery, was the lowest of eight bidders for the tender, with a price of $674.80 a ton.
The purchase is part of a wider, government-backed plan to import 1.2 million tons of sugar to control prices and reduce domestic shortages.
Sugar demand is particularly high during the holy month of Ramadan.
According to Bloomberg, Pakistan has received shipments of 264,111 tons since February and has confirmed orders of 895,000 tons scheduled to arrive by November.
The country also allowed traders to import 500,000 metric tons of raw sugar until November 30 without paying any duties, according to a government statement quoted by Bloomberg.
The government last week awarded contracts to import 320,000 tons of white sugar from Singapore’s Agrocorp International and Dubai’s Sucden Middle East.
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