ISLAMABAD, Jan 5: Delay in offloading sugar stocks of over 600,000 tons lying with the Trading Corporation (TCP) will result in a loss of Rs240 million per month to the national exchequer and deprive the consumers of cheaper sugar in the retail sector, it is learnt.
The carrying cost of the sugar, which includes storage expenses and banking charges, is 40 paisa per kilogramme per month. The average price of sugar with the TCP was Rs38.5 per kg in July 2006.
This means that by January it has risen to Rs40.5 per kg and it will increase with the passage of time.
The current average price of sugar across the country is Rs31-34 per kg in the open market.
The government had agreed with the millers that the TCP would not release costlier sugar stock in the open market immediately before the start of the cane crushing season to let them sell their buffer stock in the market.
A source in the industries ministry told Dawn that even after the beginning of crushing the TCP had not made any release to the open market. The TCP only sells 30,000 tons per month to utility stores to provide subsidised sugar in selected cities.
