Supply of sugar to TCP: two mills fail to meet PSQCA standards


September 06, 2012: Quality testing reports of two sugar mills, selected for supply of sugar to Trading Corporation of Pakistan (TCP), have been found non-conforming to PSQCA standards. Sources told Business Recorder on Wednesday that two mills have been unable to meet the quality standards of Pakistan Standard Quality Control Authority, resulting in the delay of sugar procurement from these mills.

Under the sugar procurement process, TCP collected samples of sugar from all 44 sugar mills to check the quality and finalise deals. Out of 44 mills, test results of two mills have not matched standards of PSQCA, set by the TCP for procurement of sugar from local mills.

Pakistan Council of Scientific and Industrial Research (PCSIR), authorised by TCP for testing of procured sugar, has reported that sugar of these mills is not according to standard determined by TCP. “Invert content is not according to PSQCA standards in the sugar report of Raheem Yar Khan Sugar Mill and Ittehad Sugar Mill,” according to test reports of PCSIR.

As per the terms and conditions of the tender, mills can offer another stock for supply, if a stock testing report found non-conforming to standards being announced by TCP. Following the previous practices, these mills have offered new stocks for supply and now another sampling has been made for retesting of sugar, sources said. Being a procurement agency, first test was TCP’s responsibility, however, now expenses of this (second) test will be borne by these mills themselves, they said.

Test results of remaining 42 mills have been found clear and according to PAQCA standards being announced by the TCP. Therefore, after taking fiscal delivery of stocks, TCP has made payment to these mills at Rs 50,510 per metric ton. So far, TCP has taken fiscal delivery of 186,000 tons of sugar from 42 mills and as per agreement, the commodity is lying in the godowns of mills, where from it will directly be supplied to Utility Store Corporations (USC).

Meanwhile, following the directives of Sindh High Court, TCP has also issued letter of acceptance to Adam Sugar Mills and now another quantity of 10,000 tons will be procured after which total procurement of sugar from local mills will reach 210,000 tons against tender of 200,000 tons.

Sources said the Economic Co-ordination Committee of the Cabinet, in its meeting on September 4, 2012, has also allowed TCP an additional procurement of 10,000 tons. With this decision, now the TCP will not reduce quota of eight sugar mills and procurement from these mills will be made as per previous quota allocation, as previously it was decided to cut procurement from eight mills to accommodate Adam Sugar Mills. Sources said sugar procurement process will be completed in next two weeks.


Courtesy: BR


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