Sugar procurement: TCP to start making payments from next week

Trading Corporation of Pakistan (TCP) will start payments, against the procured sugar, to domestic sugar mills from next week after four mills” test reports were found fit as per prescribed standard. 

Sources told Business Recorder on Friday that under the second phase of sugar procurement process, TCP has collected sugar samples from over 29 domestic sugar mills to check quality of procured sugar. As per TCP”s terms and conditions, procured sugar should meet the standards prescribed by Pakistan Standard and Quality Control Authority (PSQCA). After drawing the samples of bags and sugar, accordingly the state run grain trader has dispatched these samples to Pakistan Council of Scientific and Industrial research (PCSIR) and PSQCA for quality inspection. PCSIR has been authorised to check sugar quality, while bags will be examined by PSQCA. Out of 29 samples, so far test results of four mills have been received, which are according to TCP”s terms and conditions set for procurement of sugar from local mills. “PCSIR, authorised by TCP for testing of procured sugar, has reported that sugar of four mills was found as per the standard determined by PSQCA,” they added. 

Sources said after receiving quality reports, the state-run grain trader has initiated the process of payment and it is being expected that physically the payments will be made to these mills during next week. However, they said that, this payment will be made after receiving staff surveyor report, stock inspection report and handing over/taking over certificate duly signed by surveyor, Muqadam and sugar mill”s representative. 

They said as per tender condition, examination of procured sugar is necessary to ensure quality of the commodity. Therefore, presently TCP is engaged in collecting and examining the procured sugar and as PSQCA testing reports are received, TCP will make payments to millers. In addition, procured sugar will remain in the godowns of sugar mills and will be directly supplied to Utility Stores Corporation (USC) as per demand. 

In December last year, on the request of local sugar mills, the Economic Co-ordination Committee (ECC) of the Cabinet had asked TCP to procure 330,000 tons of sugar from domestic mills to ease their financial crunch. Following the ECC directives, TCP opened sugar procurement tender on January 14, 2013 and finalised deals with some 71 mills for procurement of 330,000 tons of sugar at a Rs52,800 per ton. Initially, out of 71 mills, sampling and inspection of some 29 sugar mills had almost been completed, while remaining 42 would be finished in one or two weeks, they added. As per the terms and conditions of the tender, mills can offer another stock for supply, if test report of the first stock was found non-confirming to the standard announced by TCP. 

With complete procurement and taking physical charge of 330,000 tons of sugar, TCP”s sugar stocks may reach 0.5 million tons. The procured sugar will be supplied to USC and other provincial food departments as per their demands. 

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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