Stocks of wheat, other commodities: Ministry comes under criticism over lack of authentic data

ISLAMABAD: Ministry of National Food Security and Research is said to be facing harsh criticism at the highest level for not having authentic stock figures of wheat, sugar and other commodities, well-informed sources told Business Recorder.

Ministry of Commerce, sources said, recently briefed a high-level forum that in order to overcome shortage of wheat and sugar in the country, the federal government directed Trading Corporation of Pakistan (TCP) to import wheat and sugar.

TCP had so far awarded contracts for import of 330,000 MT of wheat and had also finalized a contract for import of 25,000 MT of sugar. TCP was not provided funds by the federal government for meeting its expenditures and hence it charged a commission on the commodities it imported on the directions of the federal government.

The sources said the erstwhile Ministry of Food, Agriculture and Livestock's letter of November 20, 2004 showed that the Prime Minister had approved that TCP would charge two percent commission of the landed price of urea and in line with import of wheat to be paid by the government. Moreover, the Economic Coordination Committee (ECC) of cabinet in its decision of April 26, 2005 had allowed TCP to charge a commission of two percent for handling import of fertilizer.

Ministry of Commerce further noted that TCP was accordingly charging a commission of two percent on the import of wheat and sugar. In an inter-ministerial meeting chaired by Minister for Industries and Production on September 14, 2020, it was decided that there was a need to reduce the commission charges to 0.75 percent, as it would help in lessening the cost borne by the federal and provincial governments on import of the two commodities. Since all the relevant ministries/divisions were part of the inter-ministerial meeting, their views have been made part of the recommendation.

Ministry of Commerce requested the forum to approve reduction of commission charges of TCP to 0.75 percent of the C&F value of imported wheat and sugar connected to the current import mandated by Cabinet.

During the ensuing discussion, it was pointed out that there is a dire need for having actual, authentic figures / data on agriculture productions, stocks, shortage/surplus and requirement, etc. It was also stressed that someone should be made responsible for providing authentic data. It was also pointed out that beside wheat, availability of flour should also be closely monitored. The meeting also directed MNFS&R to officially announce government's response on impending wheat/flour and sugar shortage, after consultation with all relevant stakeholders.

The ECC approved the proposal of Commerce Ministry. ECC also approved in principle that TCP would pass on handling losses to the provinces.

Copyright Business Recorder, 2020