KARACHI - Pakistan Sugar Mills Association and Trading Corporation of Pakistan have locked horns over the issue of procurement of sugar from mills, The Nation learnt on Thursday. The TCP was opening a tender for purchase of 50,000 metric tons sugar from mills on Thursday under which it had sought the prices of the commodity from the mills, sources in TCP pointed out and confirmed. The millers' body had been demanding of the government that the TCP should procure at least 100,000 metric tons sugar in one tender at Rs29.50/per-kg while TCP wanted to procure the commodity in lots of 50,000 tons or 25,000 tons. According to sources, the sugar millers have made cartel and jointly submitting tenders at same prices, higher than ex-mill and whole sale rate, Rs30/per kg that had annoyed the TCP, as a result the corporation had cancelled two tenders each of 50,000 metric tons last week. PSMA central chairman Zaka Asharaf while talking to The Nation criticized on the Trading Corporation of Pakistan, on cancellation of two tenders for purchase of sugar from mills and said the TCP move was aimed at creating uncertainty in the market. He alleged that TCP chairman was not ready to meet with the delegation of PSMA and even he was not taking the phone calls which from the members of the association. The TCP chairman's bureaucratic attitude was damaging relations between the sugar mills and the TCP, he blamed and sought the immediately intervention of Prime Minister and Finance Minister in the matter. He said due to the mishandling of the situation and cancellation of tenders, sugar market had crashed and as a result the buyers were reluctant to buy sugar. PSMA chairman said that the sugar market had started stabilising when previous finance minister and chairman of secretaries committee on sugar Ishaq Dar announced to purchase 250,000 tons of sugar from the mills, but TCP had not honoured to the commitment made by the previous finance minister. He said the matter of cancellation of two tenders for purchase of sugar by TCP would also be raised in meeting with finance minister while assurance would be obtained for purchase of 0.7 million tons sugar through TCP as mills have surplus stocks of 2.5 million tons white sweetener. He argued that this year the sugar industry had produced 4.7 million tons of sugar, which together with imported stocks with the TCP, caused a surplus of about 1m tons after consumption in the country, while, private sector has also sufficient stocks of sugar. Meanwhile contradicting the allegations of PSMA regarding the cancellation of two tenders for purchase of sugar from mills, a senior official of TCP on condition of anonymity told The Nation that sugar millers had made cartel/group and quoted higher prices of Rs31/per kg which was much higher than prevailing wholesale market rate of commodity. He said that TCP was in a bid to enhance its reserve sugar stocks from 0.5 million tons to 0.7 millions this year aimed at keeping the prices at reasonable level. So far, TCP had total stocks of 0.4 million tons of fresh crops of FY2007-08 procured from sugar mills while 0.051 million tons stock of imported sugar, official said.