Federal Minister for Food and Agriculture Nazar Muhammad Gondal on Wednesday denied any shortage of food specially wheat in the country. Dispelling the impression that Pakistan will face food crisis next year he said that there would be no food security issue in the country despite acute water shortage and less rainfall.
It is estimated that the wheat production target of 25 million tons would be difficult to achieve due to water shortage, but the country would manage to produce 23 million tons, the minister hoped. Addressing a press conference, he said that last year Pakistan achieved record production of 24.03 million tons from 9.05 million hectares (22.36 million acres), an increment of 14 percent over the previous years 2007-08 achievement of 21 million tons.
He further said that the government was taking all necessary steps to increase per acre yield and for this purpose it was providing timely inputs to farmers. The government increased wheat support price to a great extent from Rs 625 per 40 kg to Rs 950 per 40-kg.
On a query, the minister said that the growers so far have used 9 percent more urea as compared the last year. Gondal said that the availability of fertiliser would be ensured and so far 5,00,000 tons of urea fertiliser was available against its total demand of 4,00,000 tons.
Giving further details of the government's initiatives for boosting farmers to produce more, he said that it lent further support by procuring 9.2 million tons of wheat through Pakistan Agricultural Services and Storage Corporation (Passco) and the provincial food departments against the last year's procurement of 3.9 million tons.
The public sector procurement touched a record level of 10.06 million, including carry forward of 0.828 million tons. The government allowed export of wheat products, including wheat flour to the tune of 200,000 tons of wheat and restrictions on wheat movement across provinces were removed.
The public sector releases in the provinces commenced in August 2009 and releases till date are 4.15 million tons. He said that the public sector up to 01-02-2010 has a stock of 5.90 million tons of wheat as compared to previous year's stock of 1.68 million tons.
In view of the increased public sector procurement target from 6.5 to 9.2 million tons and the existing stock position, it is estimated that on 30-4-2010 there will be a carry forward of approximately 3 million tons of wheat, the minister maintained. The prevailing average price of wheat in the market is Rs 27.07 per kg. (Rs 1,083 per 40 kg). The average price of wheat flour across the country is Rs 30.37 per kg. There are no complaints of any shortage of wheat/flour in the country.
Sharing the details of current wheat sowing area, Gondal said that according to available reports received from the provinces, total cultivated area of wheat 2009-10 crop is 22.1 million acres. The public sector procurement target for 2009-10 wheat has already been fixed as 7.5 million tons and Guaranteed Minimum Price (GMP) has also been fixed at Rs 950 per kg with the approval of ECC, he stated.
According to Minfa's estimates, the provincial governments and Passco would require Rs 178 billion for the public sector procurement of wheat up to April 2010, while the State Bank of Pakistan has expressed its inability to finance the wheat procurement due to non-realisation of the amount still outstanding against the provinces and Passco, which comes to around Rs 162 billion. The State Bank has indicated that it would finance only the amount retired till April 2010, ie around Rs 89 billions.
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