The Trading Corporation of Pakistan (TCP) has paid some Rs 2.5 billion to 40 mills against procurement of sugar to ease their financial problems. Sources told Business Recorder on Friday after getting test reports and physical charge of the procured sugar from mills, the TCP has started payments to sugar mills.
In the first phase, the TCP collected sugar samples and bags from the mills and accordingly sent the samples to Pakistan Standard Quality Control Authority (PSQCA) and bags to Pakistan Council of Scientific and Industrial research (PCSIR) for proper examination to verify the specification of these products. As the PSQCA and PCSIR test reports are being received, the TCP is making payment to the mills.
Following the directives of the Economic Co-ordination Committee (ECC) of the Cabinet, the state run grain trader awarded contract to some 65 mills for the purchase of 0.1 million tons of sugar. The first sugar tender was opened on July 18, 2013 and accordingly TCP finalised a deal with 34 mills for procurement of 50,000 tons of sugar at Rs 48,150 per ton. The second tender for the same quantity was awarded on August 2, 2013 to 31 mills at Rs 47,690 per ton.
Against this procurement, cumulatively the TCP paid a healthy amount of Rs 2.51 billion to 40 sugar mills against purchase of some 50,000 tons of sugar. With huge payment of over Rs 2 billion, the millers now have enough funds to clear the dues of sugarcane growers and make payments to banks, sources said.
They said that TCP has made these payments after getting test report of PSQCA, staff surveyor report, stock inspection report and handing-over/taking-over certificate duly signed by surveyor, Muqadam and sugar mill”s representative, they added.
“We are making payments after taking physical charge of the procured sugar and completing all the legal formalities,” a TCP official said. So far, the corporation has released payment to some 40 sugar mills, he added. He said payment to sugar mills is TCP”s top priority; however, this is not possible for the corporation to make payment without completing legal formalities.
Recently, the TCP had issued another sugar tender for purchase of 50,000 tons from mills as the new crushing season is going to commence in next two months and mills have sufficient sugar stocks in their godowns.
After opening of this tender, the TCP will release a tender for 50,000 tons as the ECC has decided to procure another quantity of 100,000 tons from domestic mills before new crushing season.
