ISLAMABAD: The government is said to have abandoned the plan of procuring 0.3 million tons of sugar and export plan after sugar mills declined to sell sugar at Rs48 per kg citing it would contravene rules of PPRA.
This was disclosed by well-placed sources, reported Business Recorder.
Pakistan Sugar Mills Association in a letter dated 30th January 2018 sent to Minister for Commerce Division stated the reference price of Rs48 per kilogram set by Economic Coordination Committee was against the regulations of Public Procurement Regulatory Authority (PPRA).
The letter added payment mechanisms of 40 percent in two instalments and 20 percent as given go-ahead by ECC was analogous to this entire regimen, which was aimed at assisting growers for their payments.
PSMA asked payment mechanism to be 100 percent advance instead. A senior officer of Commerce Division when reached for comment stated exports by sugar mills were going ahead smoothly and no further action had commenced.
He added there is no need for procurement and export of Sugar by TCP. When inquired whether the sugar procurement plan had been put on hold after not getting any bid from sugar mills, he said it hasn’t been shelved.
The official said the program was initiated to assist sugar millers in discharging the surfeit stocks due to new crushing season and as they were now exporting huge quantities on their own, the intercession wasn’t needed anymore.
