Trading Corporation of Pakistan (TCP) has sought formal approval from the Ministry of Commerce (MoC) for supplying 12,400 tons of sugar to Pakistan Army. Sources told Business Recorder on Tuesday that in response of an official request, the state-run grain trader had agreed to supply the commodity to Pakistan Army and now waiting for a green signal from the ministry.
In November last year, Directorate General of Pakistan Army sent a request for supply of 12,400 tons sugar. At that time, sufficient sugar stocks were not available with the TCP and further procurement of sugar was in process, therefore, it could not respond the request. Usually, TCP procures sugar from domestic sugar mills for USC, which requires 50,000 tons sugars per month to sell the commodity to general public through its nation-wide network at subsidised rate set by the government.
Recently, the state-run grain trader has made another procurement of 150,000 tons from domestic mills and is in a position to supply sugar to Pakistan Army, besides Utility Stores Corporation (USC). Although, now the TCP is ready to supply sugar to Pakistan Army as per their requirement, however, a formal approval is necessary from the ministry of commerce. Therefore, the TCP has sent a letter to secretary ministry of commerce for an official go-ahead for sale of sugar to Pakistan Army.
TCP has offered to release 12,400 tons sugar stocks to Pakistan Army at Rs 54.04 per kilogram, which is the actual cost of the procured sugar. The offered price is valid for the month of February 2014 and supply will be started after a formal approval from the ministry of commerce. For the last few years, the state-run grain trader has been engaged to procure sugar from domestic mills to ease their financial woes. The procured sugar is mainly stored in the godowns of sugar mills and directly supplied to USC as per its requirement.
Presently, TCP has some 100,000 tons sugar stocks, out of which, delivery orders for some 80,000 tons have already been issued by the state-run grain trader to USC. While, another quantity of 20,000 tons is still with the corporation. TCP is still procuring sugar from local sugar mills and recently Economic Co-ordination Committee (ECC) of the cabinet has allowed another procurement of 150,000 tons sugar through two tenders. A tender for the procurement of 75,000 tons will be opened today, while next tender is likely to be issued in few days.