ISLAMABAD: The Trading Corporation of Pakistan (TCP) has paid Rs21.527 billion to local mills for 478,000 tons of sugar procured on the directives of the federal government.
Official documents submitted to the Economic Coordination Committee (ECC) of the Cabinet showed that the TCP floated a gallop tender for purchasing 200,000 tons of sugar from domestic mills. A total of 56 sugar mills participated in the tender and two mills quoted lowest price of Rs46,250 per ton for 10,000 tons each.
The corporation awarded 20,000 tons to the two lowest bidders and offered other bidders to match the lowest price. As many as 45 bidders agreed to match the lowest price for a total quantity of 358,000 tons. TCP awarded 180,000 tons to 45 bidders who agreed to match the lowest price and achieved the targeted quantity of 200,000 tons. TCP forwarded the matter to the ECC for the purchase of additional quantity of 178,000 tons.
The ECC, in its meeting held on January 3, decided to purchase an additional quantity of 178,000 tons and the TCP issued award letter to the bidders on the same date. The TCP paid an amount of Rs17.482 billion (100 per cent payment) to 47 mills for a quantity of 378,000 tons up to February 22 this year. The procurement process in respect of 378,000 tons sugar from local mills has been completed.
The procured quantity - 378,000 tons - is lying in stores of 47 sugar mills.
Delivery order in respect of this quantity will be issued to the Utility Stores Corporation (USC), Pakistan Army, Navy, Air Force and provincial governments in accordance with the directives of the government.
On January 23 this year, TCP floated a gallop tender for the purchase of 100,000 tons of sugar from local mills which was opened on January 31. A total of 53 bids were received for a quantity of 263,000 tons. M/s Hunza Sugar Mills Limited Unit-1 and Hunza Sugar Mills unit-2 offered the lowest rate of Rs45,720 per ton for 5,000 tons each. Further 34 bidders offered to match the lowest price for a total quantity of 165,000 tons. TCP awarded the balance quantity of 89,300 tons to 34 bidders on pro-rata-basis on February 10.
The total payable amount for 99,300 tons is Rs4.540 billion. Payment made to 32 mills at Rs4.045 billion for 88,500 tons of sugar up to April 10 this year.
According to the documents, the ECC was further informed that the government was also considering to procure 400,000 tons sugar as strategic reserves.
Sources in the ministry of industries told this correspondent that a summary was also being submitted to the ECC for implementing the decisions taken at the Sugar Advisory Board (SAB). The next ECC meeting will be held after Finance Minister Dr Hafeez Shaikh returns from Washington.—MUSHTAQ GHUMMAN
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