TCP has paid only Rs 3.65 billion to sugar mills

The Trading Corporation of Pakistan (TCP) has cleared only Rs 3.65 billion of sugar mills against an amount of Rs 17.5 billion, official sources told Business Recorder. TCP has procured 3,78,000 tons of sugar from mills on the directives of Federal Government at Rs 46.25 per kg for a price of Rs 17.5 billion.
The Economic Co-ordination Committee (ECC) of the Cabinet, which is scheduled to meet on Tuesday, will be updated on payment issue as TCP has been instructed at the highest level for making payment to mills at the earliest. TCP Chairman Tahir Raza Naqvi had assured the ECC in its previous meeting that all payments would be cleared by the end of current month, but most of the mills did not receive payment. Finance Minister Abdul Hafeez Sheikh had directed the TCP Chairman to make payment to all millers expediently, since the payments ultimately go to the farmers.
"We have made full payment to nine sugar mills, partially to three mills, and two are being cleared anytime soon," Tahir told Business Recorder on Monday evening from Karachi. He said that Pakistan Standard Quality Control Authority (PSQCA) has been requested to immediately clear the cases of six more mills so that they can get their payments.
He said that Pakistan Council of Scientific and Industrial Research (PCSIR) has rejected the bags sent by the mills, which implies that their payment would be delayed. "These mills have to send their new samples for certification after which their cases will be processed afresh," he added.
The TCP Chairman said that he was contact with Secretary, Science and Technology, besides the head of PSQCA, so that this process should be completed as early as possible. However, the delay is on the part of PSQCA, and not the TCP, which procured sugar from mills as per directives of federal government. When the issues like delay in payment to mills and provision substandard bags by some mills were brought to the notice of the Chairman of Pakistan Sugar Mills Association (PSMA) Javed Kayani, he preferred to remain mum and just said "Nno comments".