Indonesia's three state plantation firms did not receive the minimum number of bids required in Thursday's white sugar tender to import 181,000 tonnes held over from the last two tenders, an official said. The failure of the tender could make it more difficult for Southeast Asia's biggest consumer of the sweetener to keep a lid on prices after domestic sugar returned to its previous record level of above 11,000 rupiah ($1.18) per kg in recent weeks, tracking a rally in sugar futures.

"The tender is declared failed. We will hold another tender next Tuesday," tender official Agung Murdanoto told reporters. The tender committee has split the 181,000 tonnes of white sugar for household consumption sought by the state firms into nine packages or lots, and a tender is eligible only if it attracts a minimum of three bidders for each package. "But we received only one bidder for each package," Murdanoto said.

The tender is part of Indonesia's plan to buy a total of 500,000 tonnes of white sugar for household consumption to cover a shortfall in supply in the run-up to the next crushing season that starts in May. Six state firms which obtained licences to import the sweetener have so far secured contracts to buy just 283,500 tonnes.

State procurement agency Bulog, which has bought about 50,000 tonnes, expects the first arrival of 6,000 tonnes of Thai whites later on Thursday, said its chief, Sutarto Alimoeso. He said about 27,500 tonnes of its purchase has been loaded so far in Thai ports.

Copyright Reuters, 2010