Sugar sold at Rs 45,000/ton

A massive participation of local sugar mills was witnessed in the sugar tender conducted by the Trading Corporation of Pakistan (TCP) for procurement of 50,000 tons of sugar. In response to sugar procurement tender, 54 local mills shown interest to offload their stocks to Trading Corporation of Pakistan (TCP).

Following the directives of the federal government, TCP floated a tender on Nov 22, 2013, for purchase of 50,000 tons of sugar from the local mills in order to maintain strategic sugar stocks and support the mills that are facing financial crisis. The sugar procurement tender was opened on Monday at TCP head office and overall 54 local mills participated in the tender.

All 54 mills have submitted bids for different quantities and rates ranging from Rs 45,000/= to Rs 58,000/= per metric ton (including taxes). However, so far no bid is accepted as the evaluation of received bids is under process, after which, the price evaluation/tender award committee will finalize the bid.

Sources said that two sugar mills namely Al-Noor Sugar Mill and Shah Murad have submitted lowest bids of Rs 45,000 per ton (including taxes) for quantity of 5,000 tons each. While, highest bid was received from Khazana Sugar Mill, which offer to supply 5,000 tons of sugar at Rs 58,000 per ton (including taxes).

The Economic Co-ordination Committee (ECC) of the cabinet has already allowed price matching for sugar procurement tender, therefore it is likely that after accepting the valid lowest bid, TCP’s price evaluation committee will offer other bidders to match the lowest price aimed at complete procurement as per the tender quantity.

They said that participation of 54 mills and lowest offer of Rs 45,000 per ton reflects that local mills have sufficient stock of the commodity and sincerely willing to offload their stocks to ease their financial problems.