The Ministry of Food and Agriculture (Minfa) has been directed by the Federal Cabinet to devise a comprehensive wheat procurement plan to ensure transparency and guaranteed minimum Price (GMP) of Rs 950 per 40 kilograms so that the farmers could be encouraged, official sources told Business Recorder on Saturday.
The sources said that Prime Minister Syed Yousuf Raza Gilani, who chaired the Cabinet meeting on February 18 in Lahore, underscored the importance that food security and procurement target of 6.55 million tonnes had assumed in the backdrop of GMP of Rs 950/40 kilograms fixed for wheat.
According to a presentation, given by the Minfal, it was stated that the figures were extensively quoted and intensively analysed to emphasise that the situation merited serious and concerted effort as well as effective co-ordination between the Federal and provincial governments. It was revealed that compared with Punjab, the capacity and preparedness of the government of Sindh needed urgent upgradation.
Salient features of 2009 Wheat Procurement Policy and its plan of action were also recounted to bring the Cabinet on board regarding bank loans on wheat stocks, inter-provincial movement of wheat, monitoring of Passco operations and ban on import of wheat by private sector. The Minfal clarified that imported wheat would be meant only to maintain strategic reserves. The ministry also pointed out that the government could procure over and above the target of 6.55 million tonnes of wheat subject to availability of funds.
During discussion, the sources said, it was observed that the policy of procurement prices for commodities failed to achieve desired results because it was not backed up by effective implementation/monitoring mechanism to counter the private sector''s exploitative practices. The Cabinet was informed that enhancement of storage capacity was a long-term goal, while open storage would serve the purpose for the present.
The responsibility of law-enforcement agencies in curbing smuggling of wheat was underscored. For arresting the smuggling of wheat to Afghanistan, it was proposed that the quota of wheat/atta for Fata might be separated from that of the NWFP government. Shortage of bardana was discussed at length and it was concluded that polypropylene bags were an acceptable alternative.
The role of private law sector as a competitor in procurement needed to be vigilantly monitored; and the imposition of restrictions on private sector procurement was not favoured.
Some of the Cabinet members were of the view that release price of wheat be standardised throughout the country so as to eliminate visible variation in atta prices among provinces /areas and provide flour at uniform rate to the common man. Moreover, the provinces needed to formulate consistent policies, backed by effective and aggressive implementation mechanism to maintain prices. It was noted that the matter required consultation with the provinces in view of financial implications.
The Prime Minister indicated that he would take up the matter with the provincial chief ministers during his forthcoming meeting. Concluding discussion on wheat, the Prime Minister said that timely action and comprehensive/effective monitoring mechanisms were essential for the success of procurement policy.
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