LAHORE, Nov 10: The Pakistan Sugar Mills Association (PSMA) has decided not to participate in what it termed ‘conditional’ tender floated by the Trade Corporation of Pakistan (TCP) for the purchase of 100,000 tons of sugar from them.

“The mills all over the country have decided not to respond to the tender floated (on Monday) due to the unreasonable conditions attached by the government,” Punjab PSMA officials said.

“The PSMA decision not to participate in the tender would certainly result in delayed start of crushing. We (mills) will not be able to start crushing before Eidul Fitr,” the PSMA officials said.

In reply to a question, the millers insisted that the decision not to participate in the TCP tender was taken unanimously by the mills all over the country.

If the mills stick to their stand, it is going to affect adversely wheat sowing in Punjab and Sindh.

The two conditions, that have irked the sugar mill owners, say only those mills which start sugarcane crushing from Nov 15 as well as fully repay the dues to the growers by that date will qualify to participate in the tender.

Besides, it says only 70 per cent of the price (minus sales tax) would be paid to the mills from which the corporation purchases sugar.

“These are ridiculous, and totally unjustified,” the PSMA officials said. “As of Nov 1, the mills have total surplus stocks of 481,000 tons of sugar worth about Rs9 billion. Now we’re being told that the government is going to dole out Rs1 billion (or so) in order to get the mills start crushing on Nov 15. What would we do with the remaining surplus stocks? And from where does the government want us to repay the farmers their dues?,” they asked.

Moreover, they said, the mills needed a “lead time of at least 10-15 days to commence crushing operations. How could the mills start crushing of sugarcane when the TCP tender is floated on Nov 10?,” they asked.

The government had assured the millers to purchase 200,000 tons of sugar — 100,000 in November and the rest of it in January — through the TCP to facilitate them dispose of their surplus stocks and to facilitate an early start of sugarcane crushing in the province. Sugar to be bought by the TCP is to be used to create a buffer stock in the country.

Initially, the government did not attach any condition. But it began hinting that “only those mills would benefit from the offer that repay the dues to the growers and start crushing of sugarcane by the middle of November”.

APP adds: The Trading Corporation of Pakistan has floated a tender for the procurement of 100,000 tons of white refined sugar as buffer stock from sugar mills.