Sugar export further delayed: Tajikistan declines to accept TCP”s commercial pact

Tajikistan has declined to accept Trading Corporation of Pakistan”s (TCP) commercial agreement for export of 30,000 tons of white crystal sugar and sent a new agreement seeking supply in three tranches. Sources told Business Recorder on Thursday that with the refusal of Tajikistan to sign the TCP”s commercial agreement, the much-awaited sugar export deal between Pakistan and Tajikistan had further delayed. 

On January 15, 2013 former Chairman TCP Tahir Raza Naqvi on behalf of supplying agency had signed a commercial agreement and accordingly sent it to the commercial consular of Tajikistan for signature of their concerned official. As per the commercial agreement, TCP will have to supply 30,000 tons of white crystal sugar to Tajikistan at $528 per tons through a single consignment. 

However, Tajikistan has declined to accept TCP”s commercial agreement as it is not willing to procure complete quantity of sugar through a single consignment. Instead of accepting and singing the commercial agreement sent by Pakistan”s state-run grain trader, the Agency on State Material Reserves of Tajikistan has sent a new commercial agreement to TCP with some alterations. The altered accord has been signed by chairman Agency on State Material Reserves of Tajikistan. 

As per the new agreement, Tajikistan”s procurement agency is seeking sugar procurement in three phases, instead of the procuring the 30,000 tons sugar a single consignment as per the TCP”s agreement. However, the process and schedule of the phases has not been mentioned in the agreement, they added. 

“Now, Tajikistan has requested for supply of sugar in three tranches and each tranche will be of 10,000 tons. However, there are many loopholes in the new agreement and several matters are still needed clarifications,” they added. Although, Tajikistan is asking for sugar supply in three phases, however, it didn”t mention the exit schedule of import and process of Letter of Credit (LC) opening, they added. In response to the agreement, TCP has written a letter to Tajik authorities for clarification of the process and schedule of shipment and LC opening to initiate the export process. 

With Tajikistan”s new demand, the much-awaited sugar export deal between the two countries has further delayed and now it is being expected that sugar export will start in mid February 2013, if issues were resolved in a week. Talks for export of sugar to Tajikistan are in process for the last five months. However, it could not be finalised due to some disputes. Earlier, there was some confusion over transportation expanses and later on variety of sugar as during the initial talks Tajikistan agreed to import white refined crystal sugar, while later it demanded powder sugar, which is costlier than crystal sugar. 

They said that TCP had already made all arrangements to start sugar export to Tajikistan as white crystal sugar was available with the state-run grain trader and transport rates were also obtained. Sources said that it had already been decided that point for delivery for sugar export would be Amangarh, district Nowshera, Khyber Pakhtunkhwa (close to Torkham border) and TCP would be responsible to deliver the commodity at Amangarh. While, from Amangarh to onward Dushanbe (Tajikistan Boarder) transportation expanses will be paid by Tajikistan government. It may be mentioned here that at the time of initial talks it was principally decided by the representatives of both the countries that commercial agreement for sugar export would be finalised in two weeks, however it delayed for over five months. 

Copyright Business Recorder, 2013

Muhammad Ramzan Rafique
Muhammad Ramzan Rafique

I am from a small town Chichawatni, Sahiwal, Punjab , Pakistan, studied from University of Agriculture Faisalabad, on my mission to explore world I am in Denmark these days..

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