TCP to procure 0.1 million tons of sugar

Following the directives of the Economic Co-ordination Committee of the Cabinet (ECC), the Trading Corporation of Pakistan (TCP) has issued tender for the procurement of 0.1 million tons of sugar from local mills. Sources told Business Recorder on Monday that on the request of Pakistan Sugar Mills Association (PSMA), the ECC, on Friday decided to procure an additional quantity of 0.1 million tons enabling millers to make payments to cane growers.
In the first phase, the TCP has already procured 378,000 tons of sugar from domestic mills, as the PSMA claimed that they have an excess production this year because of bumper sugarcane crop, besides a carry over stock of 0.6 million tons from sugar season 2010-11. This year, the country is expecting a bumper sugarcane crop of 58 million tons. Therefore, the federal government has decided to procure sugar stocks to provide some financial relief to mills regard to payment of growers.
On Monday, following the ECC directives, the TCP issued a gallop tender for purchase of sugar form local mills and the tender will be opened by the end of this month. TCP has invited sealed offers from domestic sugar mills for purchase of 100,000 tons of white sugar, packed in polypropylene woven bags.
According to tender document made available to Business Recorder, the TCP has indicated that sugar and bags are required to be in accordance with the specifications and standard approved by Pakistan Standard Quality Control Authority (PSQCA).
However, sugar mills, defaulted with the TCP are not eligible to participate in the tender unless they clear their dues before the tender opening date. According to the tender, a miller can submit offer for a minimum quantity of 2,000 tons and a maximum quantity of 5,000 tons of sugar while interested parties may submit their bids, in sealed envelope to be dropped in the TCP's office as on Tuesday, January 31, 2012 by 11 am. Tender will be opened the same day at 11:30 am in the presence of bidders or their authorised representatives.
In this tender, the TCP has made some changes and now new procurements will be made only from fresh sugar stocks of season 2011-12, while in the previous tender sugar millers were allowed to submit bids for crop season 2010-11 and 2011-12. "The TCP has made all the arrangements for procurement of 100,000 tons of sugar, as it is already engaged in procurement process," said a high official of the TCP.
Procured sugar will remain in the godown of sugar mills and directly supplied to the Utility Stores Corporation (USC), when required, he added. As per earlier directives of federal government, the state-run grain trader had already completed procurement of 378,000 tons of sugar at Rs 46,250 per ton from local sugar mills and some Rs 17 billion has been spent on sugar procurement in the first phase.