Trading Corporation of Pakistan (TCP) will procure some 50,000 tons of sugar from domestic mills every month to maintain strategic reserves. Sources said a fresh tender for procurement of 50,000 tons sugar is being issued by the corporation Wednesday and following the directives of the Economic Co-ordination Committee of the Cabinet, the state-run grain trader will procure some 625,000 tons of sugar during this year from domestic market for Utility Stores Corporation of Pakistan (USC).
They said the ECC in its meeting on January 28, 2014, allowing regular procurement of sugar from local mills asked TCP to procure 75,000 tons of sugar in February and subsequently 50,000 tons every month during this calendar year. Earlier, TCP was required to obtain a fresh approval from the ECC for sugar procurement.
Source said under the fresh tender of 50,000 tons, TCP has invited sealed offers from domestic sugar mills for purchase white sugar, packed in polypropylene woven bags. According to the tender document, made available to Business Recorder, the TCP has directed that sugar and bags are required to be in accordance with the specification and standard approved by Pakistan Standard Quality Control Authority (PSQCA).
The sugar mills that defaulted with the TCP will not be eligible to participate in the tender unless they clear their dues before the tender opening date. As per the tender, a miller can submit offer for a minimum quantity of 2,000 tons and a maximum 5,000 tons of sugar. The interested parties can submit their bids in sealed envelope to be dropped at the TCP office till April 2, 2014.
Like previous tender, TCP has decided to invite bids, including taxes aimed at facilitating the mills and make easier the process of taxation and cost. Meanwhile, TCP on Tuesday also completed 70,000 tons of sugar procurement under the previous tender as in response to the corporation's price matching offer some 23 mills have responded positively.
In the last tender conducted on March 14, 2014 for a quantity of 70,000 tons, some 47 parties participated and quoted prices ranging between Rs 51,000 per ton (incl. taxes) to Rs 58,000 per ton (incl. taxes). Accepting the lowest bid of M/s Fatima Sugar Mills for procurement of 5,000 tons sugar, last Friday TCP offered other bidders for price matching to complete the tender quantity. On the last date of price matching, some 23 mills had agreed to match lowest price as their acceptance was higher than the tender quantity. TCP accepted the price matching offer on a pro rata basis and accordingly awarded the contract letter to these mills.
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