The TCP is carrying out these buying and import operations on the directive of the Economic Co-ordination Committee (ECC) of the Cabinet. The corporation has been appreciated by the highest level for carrying out operations assigned to it from time to time efficiently and effectively.
According to TCP sources, major share of losses, of Rs 5.5 billion, goes to wheat import. The TCP loss for this assignment would double since another direction from the ECC for import of another one million tons wheat is in the pipeline.
The ECC had assigned the job to TCP to import one million tons wheat some time back. Now there is strong feeling that imported one million tons wheat may not be sufficient to meet the shortfall in demand and supply and it is considering to import another one million tons wheat before December 31, 2004.
Urea import was the second highest loss making operation for the TCP. The loss on account of urea import is estimated at Rs 2.5 billion.
The Corporation has no other option but to face loss of over Rs one billion for its operation of buying cotton from the ginneries simply to keep (phutti) seed-cotton and lint prices at some reasonable level.
Sugar buying is next in the row in the list of items for which TCP is facing loss. Though the loss on account of sugar buying has shrunk to some extent due to improvement in its rates in the open market but even then its impact would be enough to add Rs one billion to TCP losses.