ISLAMABAD, Nov 8: To facilitate early payment of arrears to the growers, inject liquidity into the sugar mills and also to protect interest of all the stakeholders, including growers, consumers and the sugar industry, the Economic Coordination Committee of the cabinet on Saturday approved recommendations of the ministry of commerce to allow the Trading Corporation of Pakistan to immediately float tenders for the purchase of 100,000 tons of sugar from the lowest bidders.

The ECC meeting held here under the chairmanship of Finance Minister Shaukat Aziz inter alia approved credit line for the TCP to arrange money from banks for procurement of 200,000 tons of sugar.

The ECC reiterated its earlier decision that second tranche of 100,000 tons of sugar will be only procured from those mill owners in January who have cleared arrears of the growers and start crushing season not later than November 15.

It also approved payment of 70 per cent accepted bid value, fixing of 3,000 tons as minimum quantity to be offered by bidders, acceptance of lowest bids on the terms and conditions stipulated in the tender, effective coordination with the provincial governments to ensure that the crushing season starts not later than November 15.

The ECC advised coordination of ministries of industries and MINFAL with growers and mill owners to ensure that the growers are paid arrears and the mill owners start crushing on time.

The ECC also noted that the SPI for the combined income group and SPI for the lowest income group decreased by 0.38 per cent and 0.40 per cent, respectively, over the last week.

The ECC was informed that the prices of the farm chicken, tomatoes, onions, potatoes and sugar decreased.

The Ramazan package offered by the Utility Stores Corporation has positive impact on price stabilization. The ECC further noted with satisfaction sufficient stocks of oil, sugar, fertilizer, wheat and ghee in the country.

It also approved a proposal of the ministry of petroleum and natural resources for allocation of 17.5 mmcfd gas for a desalination and power generation plant in Karachi.

The ECC also approved payment of Rs12.929 million as price escalation cost to ensure early completion of National Art Gallery in Islamabad.—APP