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  • News Desk
  • Feb 22nd, 2005
  • Comments Off on Row between two ministries costing consumers dearly
The commerce ministry and ministry of industries have failed to resolve their differences over evaluating the rate of sugar for the Trading Corporation of Pakistan (TCP) stock, leaving the matter for Prime Minister Shaukat Aziz to decide. Sources said the ministry of industries and production wants the TCP's sugar stocks for Utility Store Corporation (USC), one of its subordinate departments, at Rs 20 per kg.

During the course of discussion, the USC officials built up their case on these arguments that since the TCP had bought sugar from the millers at Rs 20, it should sell it at the same rates.

The ministry of Commerce, however, rejected the demand on the ground that rates offered by the USC were unreasonable and meant to get huge margin.

Its argument was that since the USC is supposed to sell sugar to the customers through its outlets at slightly less than the open market rates which are at present ranging between Rs 27 and 28 per kg, its demand to get the TCP stock at much lower rates does not make any sense.

The sources said that the ministry of industries and production has taken up the case with the Prime Minister through its summary requesting to decide the rate at which the TCP sugar stock to be offloaded in the market.

It is worth mentioning here that the ECC meeting held on February 8 had decided to offload the TCP stock through the USC in order to seize the upward trend in sugar rates. It also decided that the USC would sell TCP stock through its outlets at marginally lesser rates than the open market.

However, the bureaucratic working has made it a difficult proposition. The controversy is costing dearly to the consumers, who in case of timely deal between the TCP and USC would have by now got sugar at cheaper rates.

It may be noted that the TCP has 0.370 million tonnes sugar in its stock. It had bought the commodity from the mill owners last year when they had surplus stocks.

Copyright Business Recorder, 2005


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