Hasty tender for procurement of sugar gives birth to doubts
Posted by Labels: Import, Pakistan, Sugar, Tender
Many raise eyebrows over Trading Corporation of Pakistan's hasty tender for procurement of 200,000 tonnes of sugar to allegedly benefit only 25 percent influential groups of sugar industry ahead of new crushing season.
The tender is due to open on November 12 (today).
According to market sources, only 'a few' sugar mills will benefit from this tender.
When approached by Business Recorder, Zahid Ahmed, General Manager TCP, said the objective of the tender was to improve the liquidity position of sugar mills and helped them make payment to growers.
However, he admitted that the sugar mills qualifying for the tender were supposed to clear outstanding dues of growers for the crop season 2010-11.
It may be noted that the tender documents have specified that only the sugar mills carrying stocks out of the production season 2010-11 are eligible to participate in the bidding for procurement of 200,000 tonnes of sugar by the TCP.
The market sources have questioned why the Cane Commissioners of four provinces failed to initiate lawful actions against the sugar mills defaulting over payment to growers.
Unfortunately, however, no one from among the growers' associations has raised voice against such a long delay in payment of dues to growers.
They said the Competition Commission of Pakistan and Transparency International Pakistan should take notice of the situation.
When asked why the TCP was procuring sugar in haste when crushing was about to start, Zahid pointed out that the TCP was only an executing agency and not a policymaker.
The market sources have suggested that the government should re-advertise the tender with removal of bar relating to crushing season 2010-11 in order to ensure a level-playing field to all sugar mills.
Also, they said, a delay of about a week would help national exchequer save about Rs 1 billion, as prices would shed by Rs 5 per kg once the new crushing season starts from next week.
They have added further that the government should capitalise the export potential of the sugar industry, asking the sugar mills for export packing of 300,000-500,000 tonnes of sugar next season to earn foreign exchange for the country.
According to them, the government is due to make payment of $1.2 million to the IMF by next March and it can easily earn $180 million - $300 million through sugar export.
Pakistan produced 4.1 million tonnes of sugar during 2010-11 against a consumption of 4.2 million tones in the country.
Presently, the sugar mills in Punjab, Sindh and Khyber-Pakhtunkhwa are carrying surplus stocks of 350,000 tones, 150,000 tones and 40,000 tonnes, respectively.
A bumper crop ahead is suggesting that Pakistan would produce over 5 million tones of sugar in 2011-12.
0 comments:
Posting Komentar