KARACHI: The opening of tenders for the import of sugar by the Trading Corporation of Pakistan on Mondays would result in a loss of USD three million to the exchequer. The tender opening dates for the import of 500,000 metric tons of sugar are: February 6 for 150,000 MT, February 13, 150,000 MT, February 15, 50,000 MT, February 20, 30,000 MT, February 22, 50,000, and February 27, 50,000 MT. Stakeholders explained that out of the six tenders announced, two tenders which are due to open on February 15 and 22 are both falling on week days ie Mondays and as per the tender terms the validity of the offer is required to be up to 2pm PST on the next working day. Having such a validity period for the tenders to be held on weekdays is not a commercial norm and would cost TCP heavily because in such a volatile market where international prices could fluctuate up to USD 30 per metric ton in just one day's trading most suppliers will have to offer at higher prices to safeguard their exposure to any possible increase in white sugar futures traded internationally at the London Futures Exchange, they said. With the exception of one supplier/refinery, all other trading companies will have to offer higher prices since they will have to hedge their offers against the white sugar futures traded internationally on Contract No 5 at the London Futures Exchange which opens at 2pm PST Monday to Friday. If suppliers are required to add on safety margin to cover their exposure in the open market for 24 hours of trading this could possibly cost TCP up to USD 30 per metric ton and if they are to procure 100,000 metric tons against tenders expected to open on Monday this would mean a loss of USD three million to the exchequer. In view of the above, stakeholders said it would be of commercial sense for TCP to open the tender at 9am with validity up to 2pm PST on the same working day ie Monday in order to receive best possible offers from all suppliers and save valuable foreign exchange for the country. Meanwhile after much delay, TCP has finally issued the tender document for its first tender of 150,000 MT due to open on February 6. However, this gives the suppliers bare minimum time to make all the necessary arrangements such as opening of bid bond in order to participate in the coming tender especially because Friday is a bank holiday in the country. This means that suppliers only get three working days from the time of issuance of the tender document to the opening of the tender.