Releasing about 50,000 tons sugar to Utility Stores Corporation (USC), the Trading Corporation of Pakistan (TCP) said that it has sufficient stock of the commodity to meet local demand.
Talking to newsmen in his office here on Wednesday, TCP Chairman Saeed Ahmed Khan said that the corporation has about 241,000 tons of refined sugar stock, including 166,000 tons of locally procured sugar from mills and 75,000 tons of imported sugar, while 50,000 tons sugar would arrive next week at Karachi, after which overall stocks of TCP would reach 290,000 tons.
Clarifying TCP role, he said: "We cannot take any action on our own, as TCP is mandated to work on the instructions of federal government for the trade of essential commodities, like sugar, wheat, urea, cotton or rice, and maintain their buffer stocks to meet any crisis in the country. "TCP is not at all responsible for sugar crisis, and is doing its job properly by importing and distributing sugar as per government directives," he said.
He said that TCP is also regularly supplying the commodity to USC and, following government directives, it has already issued delivery orders for the supply of 50,000 tons of sugar to USC at Rs 37,500 per ton. He said: "Now it is up to USC how quickly they lift this sugar from specified sugar mills and sell to their consumers".
The chairman said that TCP had started import of sugar on the instructions of Economic Co-ordination Committee (ECC) since January this year in a staggered manner. Therefore, TCP awarded contract for the import of 25,000 tons of sugar at $451 per ton in February 2009, while 50,000 tons was imported at $474 per ton in April 2009, and another 50,000 tons at $494 per ton was imported in May 2009, which would reach Karachi in next two days.
He said that another tender for the import of 75,000 tons of refined sugar has already been issued and would be opened on August 31, 2009. Imported sugar is much costly due to the rising sugar prices in the world market and with all expenses imported sugar average price would be Rs 54 per kg, he added.
The TCP Chairman said that at present payment of sugar is not an issue and on the federal government assurance TCP is providing sugar to USC without any payment. However, it would be settled later. He said that some complaints were reported by USC with regard to lifting of TCP-owned sugar from a few sugar mills in Punjab. However, with the support of local administration 18,000 tons of sugar was lifted from one mill. Henceforth there have been no complaints of any resistance on the part of sugar mills to release TCP stock, he added.