Alliance Sugar Mills, Indus Sugar Mill were also given orders.
Sources say the mills will initially provide some 35,000 metric ton sugar. The government agreed to buy sugar at the rate of Rs58.50 per kg from these sugar mills whereas the ex-mill price on May 13, 2015 was Rs55.50 per kg. In addition to this, USC has to spend another Rs3.50 per kg for lifting, transportation, packing etc. This sugar is then sold out on USC outlets across the country on subsidised rates.
While talking to The News, Arif Azeem explained that letters were written to all sugar mills of the country asking them submit their offers for the given quantity. He added that those who submit their offers and agreed with the requirements were given the assignment. He said as every sugar mills was taken on board at the initiation of the process, so no question can be raised on the transparency of the process as we just moved ahead with lowest bidders. He explained that many corrupt practices prevail in our economic system and ex-mill price is set by mill owners and market players who never pay sales tax or any other kind of taxes whereas the USC, being a government entity, has to pay all the taxes and thus its purchase rate is always a bit higher than normal market rates.
Present MD USC Sultan Mehmood, who was suspended by the present federal minister for industries in January 2014 on charges of approving a wrong investment, while talking to The News said that neither he was member of tender committee nor had he approved this tender. Mehmood maintained that removing Dr Mukhtar, former MD USC, five days after opening of bids and his appointment after completion of bidding process was a government decision and he couldn’t comment on that.
However, federal secretary Arif Azeem maintained that Dr Mukhtar was not removed from his position and in fact he had applied for sick leave. Senior USC and ministry officials say that sugar hardly constitute 3% of a common persons kitchen budget and government should have focused on other staple food and necessary kitchen items for subsidy like flour, ghee, oil, vegetables, rice, pulses.
The officials say that it is completely incomprehensible that sugar is always considered as most important commodity for the poor and common people and only its availability is ensured in any case. The officers say that when money is on the table, there is no fight between government and opposition.