ISLAMABAD: Pakistan Agriculture Storage and Services Corporation Limited (Passco), an arm of Ministry of National Food Security and Research (MoNFS&R), is to auction over 44,784 MT of damaged wheat at a total amount of Rs 3.285 billion and seek differential of Rs 37.476 million in budget of FY 2023-24, sources close to Secretary NFS&R told Business Recorder.
Sharing the details, sources said that due to torrential rains and floods in July and August 2022, wheat stock of PASSCO was badly affected in three zones. Initially, PASSCO management reported damaged stock of 52,670 MT, which was revised to 44,784.491 MT, i.e., 7,960 MT at Khairpur, 36,124.491 MT at Dera Allah Yar and 700 MT at Hyderabad.
Being administrative Ministry of PASSCO, National Food Security & Research (NFS&R) constituted a Committee headed by Joint Secretary (Plan) and representatives from provinces and field staff of PASSCO as members to ascertain and re-confirm the quantum of damaged wheat stock of PASSCO.
The recommendations of the Committee were placed before the Board of Directors of PASSCO during its 145th meeting held on March 10, 2023.
The resolution of the BOD is as follows: “to allow the Management to dispose of the fully damaged wheat in the first phase (unfit for human consumption, as confirmed through lab test), other than to flour mills/ grain dealers.
The sale/ auction be done in phases as per recommendations of the Committee constituted by the MoNFS&R, in a highly transparent manner through a Committee of General Managers of PASSCO, who will monitor and supervise the entire process. The sorting of particularly damaged wheat be completed at the earliest and process of its sale/ auction be taken up on top priority.
“After physical verification and laboratory tests by the Committee, it has been established that the damaged wheat 44,067 MT is unsafe for human consumption. PASSCO invited bids for sale of damaged wheat in the national dailies. Bids were opened on 6th, 7th and 30th March, 2023 under the supervision of the Committees constituted for each centre where damaged wheat of 44,067 MA was stored.”
The highest bids received against the damaged stock at Khairpur, Dera Allah Yar and Hyderabad zones were as follows: Khairpur zone Rs62,300 per ton, Dera Allah Yar Khan, Rs 61,000 to 76,150 per MT and Hyderabad, Rs 89,526.97 per MT.
Sources said, offered rate of Rs 21,250/MT were on the lower side, therefore, bid were re-invited for sale of damaged stocks of Hyderabad Zone (693 MT) on March 3, 2023 and the highest bid received was Rs 89,526.97/ MT.
Now as per bids received against the damaged quantity of wheat at Khairpur, Dera Allah Yar and Hyderabad zones, the tentative net cost differential loss has been calculated to be Rs 37.476 million. The cost of damaged wheat is Rs 3.323 billion whereas bid price is Rs 3.285 billion and cost differential is Rs 37.476 million.
Finance Division in its views/ comments conveyed that it has no objection on the proposal, subject to the condition that Ministry of National Food Security and Research may meet the additional expenditure from the budgetary allocation for FY 2023-24.
Copyright Business Recorder, 2023
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