KARACHI, March 4: The Trading Corporation of Pakistan (TCP) has doubled the quantity of sugar to be purchased by the corporation from mills through tender bids being opened on Friday, official sources said.

On the directives of the government the TCP had to double the quantity of the sugar from 12,000 tons to 25,000 tons, and necessary amendment in this regard has been made in the document.

The objective of enhancing the quantity is to speed up the procurement of refined white sugar by the TCP from mills, which are seeking early relief from liquidity crunch because of huge unsold stocks lying with them.

After successful first bidding for the purchase of 12,000 tons of refined white sugar from mills the TCP offered second purchase of equal quantity but had to double the quantity on government directives.

Similarly, the corporation will open its first export tender for sugar on Saturday, March 8, 2003. Local exporters and world traders are expected to participate in the bidding. The TCP is offering 12,000 tons for export of sugar it has purchased from mills through first tender, the sources said.

In the first tender 12 sugar mills participated with lowest bid was made at Rs18,998 per ton. Instead of awarding the entire tender quantity to the lowest bidder, the corporation asked other bidders to match their offers which they did and as a result the entire quantity of 12,000 tons was equally distributed among them.

The TCP has already deputed its inspectors in these mills to inspect and certify the quality as well as packing of sugar as per terms and conditions of the tender document. The corporation will pay 95 per cent of the purchase price to the millers at the time of lifting of sugar. It will also retain 5 per cent of the performance guarantee till the produce is exported.

The sources close to the TCP said that the chairman, Syed Masood Alam Rizvi, on Tuesday held a pre-bid meeting with all the participants of the purchase tender being opened on Friday. The purpose of the meeting was to exchange view and sort out, if any, problems as well as seek suggestion.

On similar lines the TCP chief is holding a pre- bid meeting with exporters on Wednesday.

The holding of such meetings help develop better understanding between the TCP and private sector, and also creates confidence and good will between them, the sources said.