KARACHI, Nov 19: The Trading Corporation of Pakistan on Friday made a record procurement of 67,000 bales in one day, making a total purchase of about 840,000 bales of cotton from ginners.
TCP Chairman Syed Masood Alam Rizvi said the corporation had geared up its cotton procurement after Eid holidays. Previously the highest procurement was 40,000 bales executed on November 18, he added.
He said this aggressive buying had helped in increasing phutti (cotton seeds) price by Rs20 to Rs945 per 40 kg. Mr Rizvi said the TCP had so far paid Rs1.755 billion to the ginners as a 90 per cent amount against the delivery of 205,100 bales of cotton. The balance amount of 10 per cent will be paid after the receipt of evaluation report from TCP's inspectors about the grade and other specifications.
Of the total procurement, 541,000 bales were procured from Punjab and 293,000 bales from Sindh, while 6,000 from Dera Allahyar, Mr Rizvi said and added that arrivals of cotton bales at TCP godowns were estimated at about 300,000 bales.
He pointed out that the TCP was not holding any due payment of the ginners. "As soon as we get delivery we make 90 per cent of the payment and hold only 10 per cent for want of grade, staple length or other specifications," he added.
Mr Rizvi said there was no restriction on the TCP about the quantity of procurement. "We can buy as much as cotton to stabilize the prices in the country," he observed.
PAYMENT TO SUGAR MILLS: the Trading Corporation of Pakistan has paid Rs278.663 million to 13 sugar mills as a 10 per cent balance of the total amount on the submission of certificate of start of crushing from the cane commissioner.
According to the TCP here on Friday, eight sugar mills were from Punjab while five from Sindh. The remaining six sugar mills will be paid 10 per cent balance payment as and when they will produce the required certificate.
The TCP had earlier paid Rs3.767 billion to 19 mills on the purchase of 269,000 tons of sugar in May 2004 as 85 per cent of total amount. The balance payment of five per cent will be released to these mills on replacement of sugar with the fresh crop of 2004-05 up to January 31, 2005. The TCP had procured 269,000 tons of sugar at Rs16,490 per ton without sales tax on the instruction of the government. -APP
