The federal government gave Rs21 billion to the USC for procurement of five necessary items namely sugar; flour; oil; pulses and rice in the past seven months.
In March: premier Imran Khan also announced Rs50 billion for the USC this year; thus the corporation collectively got Rs71 billion, a record package in its history.
Offical News: weeks long investigation research on sugar procurement; tenders policy; subsidy; demand and supply; sale and other matters related to hike in sugar price suggested that the federal government was paying estimated Rs10 million sugar per day as subsidy to sell sugar at Rs68 per kilogram to around 4,000 plus utility stores in the country.
Background interviews with senior officials further revealed that the federal government paid Rs1.4 billion approximately only on sugar as subsidy by selling sugar on cheaper prices to the common public since January this year.
Officials familiar with the latest developments told this correspondent that the USC purchased 60,000 metric ton on by branded sugar from Chashma Sugar Mills at Rs83 per kilogram and 30,000 MT from the same unit at Rs83.5 per kilogram in March this year.
The USC purchased 20,000 MT sugar from Al-Moiz Industries Units at Rs79.50 per kilogram in March this year. The corporation purchased 78,000 MT at the cost of Rs78.328 from M/s The Thal Industries and Al-Moiz sugar plants in April this year.
Officials said Faran Sugar Mills sold 5,000 MT sugar for Rs78.32 per kilogram and Farid Sugar Mills 3,000 MT sugar to the USC for Rs78.32 per kilogram in April this year.
The regulators; through the Inquiry Commission on Sugar also got hands on these files to further probe these procurements; apparently made in haste; officials said.
The research showed that the record procurements were made at higher than the ex-mill price; which was around Rs71 to Rs74 per kilogram.
Officials also said that the USC missed its 30% set target of total Rs30 billion sales under Ramazan target this year.
Through this summary; the USC was to purchase 20,000 MT sugar from JDW Group at Rs67 per kilogram and rest of 80,000 MT sugar at Rs79.50 per kilogram from other mills.
But the PM rejected the summary and the USC purchased 20,000 MT from JWD for Rs67 per kilogram in April 2020 while it purchased 78,000 MT sugar for Rs79.50 per kilogram in the same month from six sugar mills.
When the USC was asked why it floated maximum tenders to create uncertainty in the market, which put sugar price on fire, the administration in its official response to this correspondent said; reported by Offical News "During the last regime; the government did not provided the USC any subsidy and the supply from the corporation was very low:
The USC floated tenders for purchase of 75,000 MT white refined sugar on Feb 18, 2020 but purchased 20,000 MT sugar at a price of Rs79.50 per kilogram: The USC floated tenders for purchase of 50,000 MT white refined sugar on March 12, 2020 but it purchased 20,000 MT at a price of Rs67 per kilogram.
{We purchased this sugar from M/s Dherki Sugar Mills and JDW On the special request of the Government of Pakistan, the sugar was purchased at special discounted prices ; the USC administration confirmed to this correspondent}.
The USC floated tenders for purchase of 200,000 MT white refined sugar on April 7, 2020 but tender was not awarded and scrapped due to availability of enough stock.
The USC shared details on that was March 17, 2020 tender with participants names in which the corporation had purchased 20,000 MT sugar at Rs79,500 per ton while at that time one truck, 10 MT sugar, was delivered at Karachi Jodia Bazaar for Rs75500 per ton.
"The Al-Moiz Industries Unit I and II and M/s Thal Industries Corporation Plant I and I were the participants and at that time, special price index rate for sugar was Rs90 per kilogram for that"
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