Efforts to ensure the availability of sugar under the Prime Minister’s relief package have encountered obstacles as utility stores struggle with higher bidding prices.
The latest tender saw utility stores receiving bids for sugar at a significant increase, with the price difference reaching 35 rupees per kilogram, compared to the previous tender.
Among the bidders, only Jahangir Tareen’s sugar mill participated in the 40-ton tender, indicating limited interest from the sugar industry.
However, JDW Sugar Mills made a notable bid for 10,000 metric tons of sugar, offering a staggering price of Rs. 122 per kilogram.
The unexpected surge in bidding prices has raised concerns, leading to the possibility of reissuing the sugar tender after its cancellation.
Utility stores are currently deliberating whether to proceed with the cancellation or explore alternative solutions to meet the sugar requirements under the relief package.
Utility Stores Corporation had initially issued the tender with the intention of purchasing 40,000 metric tons of sugar.
However, the available stock falls far short of this target, as utility stores currently hold only 4,000 metric tons of sugar in their inventory.
In the previous tender, utility stores managed to procure sugar at a comparatively lower rate of Rs. 87 per kilogram. The significant difference between the previous and current bidding prices has further emphasized the challenges faced by utility stores in securing an adequate supply of sugar for the relief package.
