Sugar procurement: TCP paid Rs five billion to 54 mills last month

The Trading Corporation of Pakistan (TCP) disbursed some Rs 5 billion in February 2014 among 54 mills against the procured sugar to ease their financial woes. Sources told Business Recorder on Friday that after taking physical charge of the procured sugar and completing all legal formalities, the state-run grain trader has initiated payments to domestic sugar mills.
Following the directives of Economic Co-ordination Committee (ECC) of the cabinet, during December and January TCP procured some 150,000 tons of sugar from domestic mills aimed at building strategic reserves. For the last two years, TCP is procuring sugar from local mills, which are facing some financial difficulties owing to slow sales and low commodity prices in the market. Sources said that after getting testing reports from Pakistan Standard Quality Control Authority (PSQCA) and Pakistan Council of Scientific and Industrial Research (PCSIR) and taking physical charge of the procured sugar, TCP has made payments to several sugar mills, of which test reports were meeting the tender''s terms and conditions prescribed by the corporation.
During February, cumulatively the state-run grain trader has paid a healthy amount of around Rs 5 billion to some 54 sugar mills across the country against procurement of 100,480 tons of sugar. "These payments have been made after getting testing reports from PSQCA/PCSIR, staff surveyor report, stock inspection report and handing over/taking over certificate duly singed by surveyor, muqadam and sugar mill''s representative," said a TCP official.
They said that TCP was still engaged to examine the procured sugar to clear mills'' dues. With receiving the testing reports, the corporation is making payment to the mills, they added. In addition to these payments, cases of several mills are in process and likely to be paid during this month. Still, TCP has to make payment of over Rs 2 billion against some 41,000 tons procured sugar, they added.
"TCP is making efforts for timely payment to sugar mills against procured sugar, however, the process could not be completed without legal formalities," the official said. It may be mentioned here that sugar procurement is a major operation of the corporation and TCP had paid over Rs 26 billion to domestic sugar mills against the procurement of 0.5 million tons of sugar during CY13.