PSMA happy over sugar tender by TCP

ISLAMABAD: The Pakistan Sugar Mills Association (PSMA) has greatly appreciated the tender issued by the Trading Corporation of Pakistan (TCP) for procurement of 200,000 tons of sugar, which would "greatly help and support the growers".

The spokesman of the Association said that bids of minimum price of Rs 65 and maximum of Rs 66 per kg were received in an open public tender on Saturday. He said that due to TCP's conditionalities, additional financial cost of Rs 5.15 per kg has been incorporated in the price.

Official sources told Business Recorder that TCP would submit the price quoted by the mills to the Secretaries' committee, which will give its go-ahead signal to the TCP.

"As we would receive green signal from the Secretaries' committee we will finalise deals with the mills," sources said.

After the Secretaries' committee approval, the sugar procurement plan will also be got approved from the Economic Coordination Committee (ECC) of the Cabinet. The ECC's decision will be ratified by the Cabinet.

"The price quoted is in line with the market, and there is no question of charging higher price to GOP," the spokesman, and added that sale of sugar to TCP would be instrumental in facilitating payments to growers during the crushing season.

Javed Kayani, Chairman of PSMA, also lauded the government for this timely decision and expressed hope that this would greatly benefit the farmer community.

He said price of sugar is lower compared to last year because supply is more than demand. Last year, sugar price in November was around Rs 80-90 per kg and at present, in different markets and regions, it is in the range of Rs 64-66.

Javed said that the price received in TCP bids is lower by Rs 10 per kg compared to landed cost of imported sugar.