TCP pays Rs 3.3 billion to 11 sugar mill
February 11, 2013
The Trading Corporation of Pakistan (TCP) is reported to have released outstanding payments to 11 sugar mills amounting to Rs3.3 billion, enabling mill owners to clear sugarcane growers” dues.
Sources told Business Recorder on Saturday that after taking physical charge of the procured sugar and completing legal formalities, the state-run corporation made payments after securing sugar testing reports from Pakistan Standard Quality Control Authority (PSQCA) which suggested that the purchased material was in accordance with the terms and conditions of the tender. These payments were made after finalisation of various legal formalities, including completion of staff surveyor and stock inspection reports. The handing-over and taking-over certificates were also duly singed by surveyors, Muqadams and sugar mills” representatives.
Following the recent directives of the Economic Co-ordination Committee (ECC) of the Cabinet, the TCP finalised deals for procuring 330,000 tons of sugar from domestic mills, which had been facing some financial difficulties because of slow sales and low commodity prices in the local market.
So far, the TCP has procured over 60,000 tons of sugar, sources said.
Cumulatively, the state run grain trader paid Rs3.39 billion to 11 sugar mills across the country against the purchase of 64,280 tons of sugar.
In the second phase of procurement, after finalising the purchase agreement, sampling of procured sugar was initiated and sugar samples were sent to Pakistan Council of Scientific and Industrial Research (PCSIR), while bags samples are being dispatched to PSQCA for testing reports.
According to TCP sources, of 71 sugar mills, so far sampling of sugar and bags from 47 mills has completed and sent for appropriate testing. Of the 47 mills, survey and testing reports of 15 mills had been received and accordingly TCP had made physical payments of Rs3.393 billion to 11 mills.
Payment to four more mills is under process and they are likely to get payments on Monday or Tuesday, sources said. Huda Sugar Mills and Kamalia Sugar Mill were lowest bidders, selling 10,000 tons each of sugar. These mills got Rs1.05 billion against the supply of 20,000 tons of sugar.
Cumulatively, Rs2.33 billion has been disbursed among nine other mills, including Sanghar Sugar Mill, Ranipur Sugar Mill, Macca Sugar Mill, Haq Bahoo Sugar Mill, Fecto Sugar Mill, Abdullah Shah Ghazi Sugar Mill, Dewan Sugar Mill, Shah Murad Sugar Mill and Sind Abadgar Sugar Mill. Each mill supplied 4,920 tons of sugar and received an amount of Rs259.776 million.
“TCP is making efforts to make payments to sugar mills against procured sugar. However, the process cannot be completed without (finalising) legal formalities,” a TCP official said.
“PSQCA test report, staff surveyor report, stock inspection report and handing over taking over certificate are necessary for full and final payment,” he said.
After taking physical charge of 330,000 tons of sugar, TCP”s sugar stocks may touch 500,000 tons. The procured sugar will be supplied to Utility Store Corporation (USC) and provincial food departments to meet their demands.