The Ministry of commerce has allowed the Trading Corporation of Pakistan (TCP) to export 30,000 tons of sugar to Tajikistan under a revised agreement. Sources said on Tuesday that a few days ago, the TCP had approached the ministry of commerce and sought permission for the signing of a commercial agreement with Tajikistan, which is willing to import 30,000 tons of sugar in three consignments.
For the past six months, Pakistan and Tajikistan have been negotiating to finalise the sugar supply deal. Initial talks were held on August 15 last year in Islamabad in the presence of Minister for Commerce Makhdoom Amin Fahim and Nurmahmad Akhmedov, the Chairman of Tajikistan”s Agency on State Material Reserves. During the talks, a rate of $528 per tons was decided for the supply.
However, Tajikistan is now seeking to import sugar in smaller batches and wants to establish Letters of Credit (LCs) against the required quantity. “Tajikistan has informed TCP officials that it will import complete quantity of sugar in three tranches, instead of a single consignment and each consignment of 10,000 tons of sugar will import after two months,” they said.
Although the TCP was authorised to take a decision, it sought the ministry”s opinion and get its approval, as the sugar export deal had been initiated by the ministry of commerce. In response of TCP”s letter, the ministry gave its go-ahead for the signing of a commercial agreement with Tajikistan. The Ministry also allowed the state-run corporation to export sugar to Tajikistan in accordance with its proposed schedule, establishing more than one letter of credit to facilitate the neighbouring country.
The revised commercial agreement is likely to signed by the acting chairman of the TCP, Akbar Javed Abid, which will then be sent to Tajikistan for endorsement. Meanwhile, TCP allocated 30,000 tons of sugar stock from 2011-2012 crop. This stock is stored in warehouses of seven sugar mills, including Chanar, Thal, Safina, Shaikho, Al-Moiz and Chashma sugar mills.
The first L/C for 10,000 tons of sugar will be established one week after the signing of a commercial agreement between Pakistan and Tajikistan, while the second L/C will be established after two months of the first delivery. The third L/C will be opened after two months of the second delivery. Peshawar has already been fixed as the delivery point, where a warehouse has already been acquired by the TCP for storage. TCP will be responsible for transportation from sugar mills to Peshawar. Tajikistan will bear expenses for onward transportation.
