Egypt’s 55,000 tonnes sugar purchase was non-tender deal

epa05624204 Egyptians buy subsidized sugar from a government truck in Cairo, Egypt, 09 November 2016. Reports state Egypt is facing a shortage in sugar supplies, as shops have run out of the commodity and prices have doubled over the last few weeks. The government is providing subsidized sugar at seven Egyptian pounds per kilogram (about 0.6 euros) through Ministry of Trade and Supply sales outlets, as price of unsubsidized sugar increased to over 10 pounds per kilogram. EPA/KHALED ELFIQI

 

Bloomberg

The purchase of 55,000 tonnes of sugar by Egypt’s state commodity buyer GASC on Monday was a direct, non-tender deal, traders said on Tuesday. GASC, the General Authority for Supply Commodities, said on Monday had bought the white sugar for delivery between Jan. 7 and Jan. 20.
Dealers said on Tuesday the purchase was made in Egyptian pounds from Multitrade/ED&F Man. No price was available. “This was direct purchasing without a tender being issued,” one European trader said. “We did not know anything about it before it was reported on Reuters.”
GASC was not immediately available for comment on Tuesday. GASC had cancelled to previous international tenders to buy 55,000 tonnes of white sugar on Dec. 10 and Dec. 21. Traders said that only one supplier submitted an offer in each of the cancelled tenders.
“One offer is not sufficient to constitute a tender and GASC has been struggling to attract more offers,” another European trader said. “I suspect a decision was made to undertake a direct, non-tender purchase.” “We do not have the details but my feeling is that GASC may well have paid more in the private deal than in an international tender,” the trader said.

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