RP eyes sugar tender, RI crop seen higher

RP eyes sugar tender, RI crop seen higher

BANGKOK (Reuters): The Philippines is likely to tender again to buy sugar in a week or so because a state-owned supplier is facing difficulties finding a bank guarantee, trade sources said on Monday.

"The state-owned Philippine International Trading Corporation (PITC) has asked the Philippine National Food Authority (NFA) for an extension to June 13 to find a bank guarantee from a previously scheduled June 7," one said.

The NFA had asked the PITC to provide a bank guarantee equivalent to 100 percent of the contracted price to ensure that the PITC will stick to the agreement.

"If PITC fails to do so by 1000 GMT (5 p.m. Jakarta time) on Wednesday, we will then have to go for the re-tender, and we have already prepared for that," an NFA source told Reuters.

The PITC recently informed the NFA that the supplier of the sugar would be Vietnam's state-owned Vietnam Food, while British- based Dulverton Investment Limited is its representative, trade sources said.

Thai raw sugar for July/September shipment was quoted steady at 90/100 points[SUGAR/ASIA1) over New York CSCE.

Thai raw sugar premiums for October/December were also quoted unchanged at 90/115 points.

Thai white sugar for June/July shipment was offered lower at $10 over London prices, but was still without bids after last week's $13 offered.

In the Thai market, the trading firm Czarnikow has nominated a 9,000-ton vessel to take Thai raw sugar for June shipment to Japan, Thai shippers said.

Indonesia's 2001 sugar output is estimated at around 1.8-2.0 million tons, up from around 1.7 million in 2000 due to expected better rainfalls, trade sources told Reuters.

Indonesia is now in the harvest season for the 2001 crop, which started in April and will run through to September.

"As more local supplies are coming onto the market, Indonesia is expected to slow importing sugar for the next several months, before starting buying again in the last quarter of the year through to next year," said a trader.

Indonesia is expected to import around 1.0-1.5 million tons of sugar in 2002, against an estimated 1.5 million tons imports in 2001, said Putut Muljono, corporate's secretary at Indonesia's state-owned PTTN 11, which comprises several sugar mills.

"Indonesia's domestic sugar consumption in 2002 is estimated at around 3-3.3 million tons, about the same as this year as the domestic economy is not likely to much improve," Muljono told Reuters.

Indonesia has around 67 sugar mills, of which only nine are privately owned.

Thailand is Indonesia's major sugar supplier.

Indonesia imports around one million tons of sugar from Thailand each year.