ISLAMABAD: Economic Coordination Committee (ECC) of the Cabinet has directed Ministry of National Food Security & Research (MoNFS&R) to submit a summary allowing Sindh to procure additional wheat, when it has bought its initial quota, official sources told Business Recorder.
The decision was taken on May 9, 2022 when a summary regarding enhancement of wheat procurement targets for Punjab and Pakistan Agricultural Storage & Services Corporation (PASSCO) by 01 MMT and 0.5 MMT, respectively, came under consideration.
The ECC was informed that a consultative meeting under the chairmanship of the Prime Minister was held on May 06, 2022 on wheat issues wherein a comprehensive discussion was held on various segments pertaining to wheat crop.
PASSCO and Punjab Food Department explained the progress about their current wheat procurement drive. PASSCO and Punjab apprised that on April 30, 2022 wheat procurement targets of 1.20 MMT and 4.00 MMT, respectively, were met and Punjab was struggling to enhance its procurement target from 4.0 MMT to 5.00 MMT.
Prime Minister directed PASSCO to procure additional quantum of 0.5 MMT of wheat. It was decided that MNFS&R should move a summary to the ECC of the Cabinet for obtaining formal approval for the procurement of additional quantity of 0.50 MMT for PASSCO and 1.00 MMT for Punjab with their Cash Credit Limits (CCL).
PASSCO has submitted a letter for assigned additional target of 0.50 MMT with the CCL of Rs.28.50 billion. Punjab forwarded a copy of the letter which was sent to the Finance Division requesting for enhancing their procurement target up to the level of 4.5 MMT with the CCL of Rs.145.50 billion.
The M/o NFS&R maintains that in wake of local wheat production shortfall (at around 10%), Russia-Ukraine war, recent pricing trend, Afghanistan situation, to build up strategic reserves and to stabilize local wheat market, it recommends to enhance public wheat procurement targets. PASSCO may be allowed to procure an additional quantity of 0.50 MMT with the CCL of Rs28.50 billion, whereas, Punjab Food Department may be allowed to procure additional quantity of 1.00 MMT with the CCL of Rs145.50 billion.
During discussion at the ECC meeting on May 9, 2022, while reviewing the requirement of additional wheat procurement in the country, it was observed that since Government of Punjab and PASSCO had met their required targets, both Punjab and PASSCO may be allowed to procure an additional quantity of wheat to meet any likely shortages of the commodity.
It was requested that PASSCO may be allowed to procure an additional quantity of 0.50 MMT with the CCL of Rs 28.50 billion whereas Punjab Food Department may be allowed to procure additional quantity of 1.00 MMT with the CCL of Rs 145.50 billion The forum further observed that Government of Sindh could not procure wheat as per the given target but on achieving the target, its request for procurement of additional quantity of wheat (if any) could be considered at a later stage.
The ECC also asked the Ministry of National Food Security & Research to bring a summary for allowing Sindh to procure additional wheat when it has bought its initial quota.
Copyright Business Recorder, 2022
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