The TCP will issue the first tender of 50,000 tonnes sugar in the first week of August. In order to encourage small investors/buyers the TCP has been asked to offer buffer stocks in small lots between 50-100 tonnes.
Sugar industrialists or their agents will not be allowed to bid for buffer sugar stocks. The exclusion of industrialists and their agents is meant to encourage those who deal in sugar business.
The TCP has also been asked to keep on building its sugar stocks through imports to ensure sufficient stock to counter profiteers tactics to get undue profit on the commodity sale.
High sugar prices since December 2004 have been a cause of concern to the government. Now with the holy month of Ramazan only a few weeks away, the government is for all-out efforts to bring sugar prices down to its desired level, and offloading buffer stocks is part of the same policy.
An official of the TCP, on the condition of anonymity, told Business Recorder that the TCP has received instructions from the federal government to download buffer sugar stocks in the market in instalments of 50,000 tonnes and at the same time build-up its stocks through import.
The official said: "We have been asked to follow two-way strategy to bring down sugar prices in the open market. It's to import and dispose of stocks in instalments on monthly basis simultaneously."
An official of the Finance Ministry said the prime minister had directed TCP to provide to Utility Stores Corporation (USC) whatever quantity it can offload through its outlets, to increase supply in the market.
The prime minister was informed that the TCP was providing USC around 10,000 tonnes of sugar every month which was being sold at its outlets in small packing of 2kg and 5kg at Rs 23 per kg.