KARACHI, Nov 5: The Trading Corporation of Pakistan (TCP) will float the first tender for sugar purchase in next three to four days as a first step to begin the procurement of 200,000 tons of the commodity from local mills.

TCP sources said here on Wednesday that the corporation has received instructions for the procurement of sugar from mills to bail out the industry from current financial crisis.

They said that the decision has been taken on the instruction of Prime Minister Mir Zafarullah Khan Jamali, who asked the TCP to buy 200,000 tons of sugar as buffer stock from sugar mills.

It may be recalled that sugar mills have linked the start of crushing of sugarcane with the procurement of surplus stock to ease off pressure from sugar industry which is accumulating heavy financial losses and was unable to clear dues of growers.

The Sindh government has also issued a notification for start of the crushing season 2003-04 from November 15, 2003.

“TCP is ready and the first tender for the purchase of sugar will be issued in next three to four days,” the sources said.

They pointed out that in the first step TCP sill procure 100,000 tons of sugar while the remaining 100,000 tons are to be purchased in the second phase, beginning from January 2004.

Sources said that the corporation has chalked out a procurement plan in a meeting, chaired by TCP chairman Masood Alam Rizvi. Sugar purchase will be completed before Eid, they added.

They said that Economic Coordination Committee (ECC) of the Federal Cabinet had earlier decided to procure 200,000 tons of sugar from mills in a bid to save them from financial losses caused due to import of excess sugar two years ago.—APP