KARACHI, July 1: After entering into import contracts of 0.815 million tons of sugar the Trading Corporation of Pakistan (TCP) has been directed by the government to stop further imports. The corporation is presently holding stocks of around 0.288 million tons from the locally procured and imported sugar.

This was stated by the chairman Asif Zaman Ansari here on Saturday at a news conference. He said that import contracts for a total of 0.815 million tons of sugar were entered by the TCP, out of which 0.220 million tons have arrived and around 0.317 million tons would reach Karachi ports during July and early August. After moving on fast track the corporation not only managed to meet the sugar shortage in the domestic market but simultaneously, imported huge quantity of urea.

The TCP chairman said that the remaining balance of the contracted sugar will arrive by second week of October and the corporation will make further move on the advice of the government. Mr Ansari said that in order to offload sugar held by the TCP the government had constituted a four-member committee comprising secretaries from ministries of agriculture, commerce, industries and finance.

He said that the corporation during January 2005 to June 30, 2006, supplied 0.254 million tons of sugar to the Utility Stores Corporation (USC). Out of these 42,000 tons were of imported sugar, he added.

Referring to the cost incurred by the TCP on imported sugar, he said that on an average it was costing at Rs38 to Rs38.50 per kg against a landed cost of Rs40 to Rs42 on imports during this year. Last year’s sugar imports cost the TCP at around Rs30 per kg. He further said that in all around Rs750 million came up as a subsidy and the government so far paid Rs521 million which was actually transferred to end-consumers.

He said the government has for the time-being stopped the corporation from entering into further import contracts because price of sugar in the world market has gone very high.

Last year, he said, the TCP imported around 0.375 million tons of urea and the government has given a task of importing around 0.4 million tons this year which was also met. Mr Ansari said it was a big task for the corporation to import huge quantities of these sensitive commodities.

Refuting the media claims that the TCP’s procurement methods are not transparent, he said that the TCP has entered into arrangement with the Transparency International and was strictly following the system. He said the TCP called bids for the import of gram and only three suppliers made offers, and hence it was difficult to meet the shortage.

Responding to a question, the TCP chairman said that contract for import of 51,000 tons of channa from India was valid as the ban imposed by Indian government was on June 27, 2006, but “our bids were accepted prior to the development.”