ISLAMABAD: Prime Minister's two top aides have expressed fear that another wheat crisis is in the offing in March next as the consumption figures/data are confusing, official sources told Business Recorder.
Ministry of National Food Security and Research revealed that the ECC while considering its summary in its meeting, held on November 4, 2020, regarding provision of 0.5 MMT of wheat from PASSCO to Khyber Pakhtunkhwa Food Department, directed MNFS&R to review the proposal holistically in consultation with relevant stakeholders and submit a clear proposal to the ECC for consideration. Similarly, a summary for import of 380,000 MT wheat for AJ&K, and USC, was placed before ECC on December 16, 2020. The ECC allowed provision of 30,000 MT wheat to USC and AJ&K each from PASSCO stocks as an interim arrangement.
It was stated that during a price control meeting held on October 27, 2020, the PM, in principle, approved 0.1 MMT of wheat to Government of KP in addition to earlier 0.5 MMT out of PASSCO stocks. In compliance of the decision of the PM Office, PASSCO had so far provided a quantity of 396,487 MT of wheat to KP Food Department. To stabilize local market prices, KP Food Department had increased its daily wheat releases from 4,000 MT/ day to 6,000 MT/ day to the floor mills and requested for provision of remaining quantity of 200,000 MT of indigenous wheat from PASSCO stocks.
Ministry of National Food Security and Research further stated that AJ&K too had requested 80,000 MT wheat for the needs of its people for the next 80 days. In addition, USC requested for provision of 220,000 MT wheat for supply of Atta (wheat flour) at its stores including during the month of Ramazan, which is starting in April 2021. PASSCO had stated that after fulfillment of all commitments, including additional quantities demanded by KP (200,000 MT), AJ&K (80,000 MT) and USC (220,000), as on April 01, 2021, it would be left with the surplus quantity of 46,699 MT. In order to maintain strategic reserves and meet any unforeseen eventuality, PASSCO had proposed import of wheat equal to the quantity to be provided to AJ&K and USC.
However, keeping in view the international wheat prices, which are the highest at the moment, as well as possible arrival time of wheat in the country i.e. March/April 2021, PASSCO proposed to defer the import of wheat and reconsider the same in June/July, 2021 keeping in view the stock position and international prices. Ministry of National Food Security and Research proposed the following for consideration of the ECC: (i) additional wheat allocation of 200,000 MT for Khyber Pakhtunkhwa;(ii) provision of 80,000 MT to AJ&K to USC from PASSCO stock;(iii) all charges including the incidental charges will be borne by the respective recipient agencies and ;(iv) a decision for further import of wheat would be taken in May/June 2021, keeping in view the stock position and international prices.
During the ensuing discussion, the Minister for National Food Security argued that the minimum support price of wheat should have been at least Rs 1800/ 40 kg which could provide considerable incentive to the former to increase area under cultivation of wheat. The Additional Secretary, Ministry of National Food Security and Research stated that by and large, the exiting stock of wheat was sufficient to meet the requirement till April 14, 2021. However, additional quantity may be required to replenish the reserve stock of PASSCO.
The Adviser to the Prime Minister on Commerce, Abdul Razak Dawood stated that the data/figures on availability of wheat in the country was very confusing. There was an increase in demand of wheat from various quarters. Therefore, if the figures on consumption of wheat were kept in view, a shortage may be expected before the harvest of wheat crop, 2021. SAPM on Petroleum, on Nadeem Babar endorsed these views.
Adviser to the Prime Minister on Institutional Reforms & Austerity opined that a considerable amount of precious foreign exchange had already been incurred on import of wheat. While supporting his view, the Finance Secretary emphasized the need for a comprehensive wheat policy of the federal government. Therefore, increase in demand should be estimated on the basis of authentic data. The ECC observed that in view of the increased demand of wheat existing stock could apparently be enough to meet the demand. However, by the end of March or by mid-April 2021, the position of reserve stock might become significantly low. Therefore, it would be appropriate to replenish the stocks well in time to avoid possible shortage and to stabilize the market price of wheat.
After a detailed discussion, the ECC decided that vis-vis the data/figures presented in the meeting, import of additional quantity of wheat appeared necessary in order to ensure sufficient reserve stocks before harvest of local wheat crop 2021. Therefore, Ministry of National Food Security and Research was directed to submit a summary in next meeting of ECC, ascertaining actual requirement of import, in consultation with relevant stakeholders.
The ECC also directed Ministry of National Food Security and Research to make presentation to the ECC in its next meeting on production, consumption, available stock and position of import of wheat by PASSCO and private sector in the country.
Copyright Business Recorder, 2021
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