The Trading Corporation of Pakistan (TCP) will supply 100,000 tons of sugar to Utility Stores Corporation (USC) to avoid shortage of the essential commodity during Ramazan. Following the federal government directives, the TCP is providing the commodity as per demand of utility stores and during the last one month about 100,000 tons of sugar supply Release Orders (ROs) have been issued by TCP in favour of USC.
First 50,000 tons of RO of imported sugar was issued on July 5, 2011 by TCP in favour of USC and out of which some 36,000 tons of commodity has been lifted by the USC from TCP stores. Remaining 14,000 tons of sugar is being lifted on regular basis. On the request of USC, another RO of 50,000 tons of sugar has been issued by TCP on July 29, 2011. However, lifting under this RO has so far not started.
Sources said that the federal government has also decided to directly pay subsidy to USC. Therefore, TCP is supplying imported sugar at its cost and USC will directly claim subsidy from federal government. Under the first 50,000 tons RO, TCP supplied sugar at a price of Rs 67,400 per ton, which included TCP''s imported cost and other expenses. Sugar supply under second RO will be at Rs 68,300 per ton.
However, USC will bear a subsidy of Rs 13-14 per kg, as it is selling sugar at Rs 55 per kilogram across the country. Currently, there is about Rs 20 per kilogram difference in retail market sugar price and USC price. The sugar price in the major retail market is between Rs 74 to Rs 76 per kilogram. TCP has also provided 10,000 tons of sugar to Pakistan Army on its request and RO has issued to Pakistan Army, out of which they have lifted 500 tons of sugar. "Despite supply of over 0.1 million tons of sugar we have sufficient stocks of imported sugar and there will no shortage of commodity during Ramazan", said a high official of TCP when approached.
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