Khyber Pakhtunkhwa government is unlikely to achieve procurement target of wheat, fixed for the current season, as growers are preferring the private buyers, due to prevailing high rates in the open market, coupled with the ban on movement of wheat from Punjab, the sources told Business Recorder here on Tuesday.
Despite, the local wheat price has been increased at Rs 3500-Rs 3600 per-100 kg bag against the official fixed rate of Rs 3100. The provincial government has fixed a target to procure 4,50,000 ton of wheat from local purchase in the current season, but it has failed to get a single kilogram from farmers despite opening of purchase from May 01, according to official sources.
The sources further said that it could be difficult to achieve the set target of wheat procurement under the prevailing rates in retail market. Whereas, the KP flour mills are mostly dependent on Punjab market, because of low forecast of wheat production in the province. But, the Punjab government has imposed ban on transportation of inter-provincial wheat for last one month, causing huge difficulties for local millers to run their units appropriately.
"The supply of wheat has been suspended for last one month from Punjab, which is contrary to article 151 of the constitution, Anees Ashraf, Chairman All Pakistan Flour Millers Association Khyber Pakhtunkhwa, told this scribe. He added millers are forced to shut-down units owing to non-available of sufficient stock of wheat, which would be caused massive unemployment in KP.
Ashraf said that price of wheat-flour has been contained in Punjab, after fulfilling the requirement of wheat to local millers. Whereas, he added the wheat export has been substantially declined from Khyber Pakhtunkhwa to neighbouring Afghanistan in wake sharp rise in prices of flour in the province.
"Afghan importers are directly purchased from Punjab, causing huge financial losses to local flour millers of the Khyber Pakhtunkhwa, APFMA provincial chairman said. Owing to enforcement of ban on wheat from Punjab, he maintained, the wheat procurement target would be unachievable, set for the current season in KP. He said the Punjab food department has been purchasing 40million ton of wheat from available stock in the Punjab, while around 1.6million Pakistan Agriculture Storage and Services Corporation (PASSCO), remaining wheat supplying from local stocky.
Despite the fact, the officials' sources added the provincial government is intending to achieve target and for this purpose, increases wheat support price at Rs 1250 per-40 kg against the previous rate of Rs 1200. He said that the food department would require Rs 14billion for procurement of wheat under the estimated cost. He added that a sum of Rs 4billion is available in account-II of food department, while Rs 10billion would arrange from the KP prime financial entity the Bank of Khyber (BoK).
"Our top priority is to achieve target by local purchase, rather to rely on Punjab food department and Pakistan Agriculture Storage and Services Corporation, the official sources said. For this purpose, he added the government has increased support price of wheat at Rs 1250 per 40-kg, which is also offering government of Punjab to farmers at the same rate.
During previous season, the KP government had failed to achieve, set target of 400,000 ton of wheat. The provincial food department had purchased wheat at Rs 3800 and Rs 3900 per 100-kg bag from Passco, which exceeded the estimated amount with accidental and transportation charges, bearing a huge brunt of additional financial burden on provincial exchequer Rs 3billion. The KP Food Department had purchased wheat from Passco at Rs 37,125 per ton under a set deal between them, during last season, a well-placed source in KP food department said.
This fiscal year, the Federal government has given a target procurement of 450,000 ton wheat, to fulfil the requirement of the food commodity in the province. Again this time, the target is unlikely to achieve due to prevailing high price in open market, and the food department inability to purchase single kilogram of wheat from growers, as they prefer the private buyers, the sources said.
"If the price would come down in open market, then the wheat procurement target would be achievable, otherwise, it is apparently seeing difficult the attain it, an official said. He added the food department has available financial resources to purchase wheat from growers, if they are ready to give them on government fixed rates. "How it can possible to sell out farmers at low price of wheat Rs 3100 per 100-kg bag, against the emerging price of Rs 3500 and Rs 3600 in the open market.
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