Khyber Pakhtunkhwa government misses wheat procurement target for current season

Due to inability of provincial food department, Khyber-Pakhtunkhwa government has yet again missed the wheat procurement target, set for current season. The provincial food department has only managed to purchase 63,000 tons of wheat from local purchases, of the total set target of 450,000 tons, achieving only 15 percent, told a reliable source to Business Recorder here on Tuesday.
An official at Provincial Food Department said the high prices in local market, coupled with imposition of month ban on movement wheat movement from May 1 to 27, this year, by Punjab government, were the main reason behind missing of wheat procurement target. The sources said despite the local wheat price had been increased by provincial government at Rs 3,500-Rs 3,600 per 100-kg bag against the official fixed rate of Rs 3,100, but the growers were preferring to private buyers. The experts earlier predicated that the target fixed by provincial government, unachievable, due to prevailing high rates in retail market of Punjab.
Owing the monopoly of wheat stock in Punjab, the sources said the province had always faced with wheat shortages issue. He said the provincial government had already allocated Rs 2.7billion in current fiscal year, on head of wheat subsidised, against the demand of Rs 4billion for this purpose.
The sources further revealed that the wheat purchase on high rates might be additional burden of Rs 3billion to provincial kitty. During last season, he added the KP had got wheat from Pakistan Agriculture Storage and Services Corporation (PASSCO) on high rates, putting additional financial implication of Rs 2.5billion.
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 3,800 and Rs 3,900 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 officials said the KP would definitely approach to Passco, to purchase wheat to meet the target and fulfil needs of food commodity. On the other hand, he said the provincial food department has also extended local purchase till the end of July, but the sources, said it's difficult to meet, fixed target from local purchase due to visible difference of rates between official and open market.
KP has a total wheat requirement four million ton, against its production of around 0.1million, while rest of 3million food commodity is fulfilling from Punjab in shape of flour every year, the official informed. He added the Punjab is fulfilling our 75 percent requirement of the food commodity.
The sources said the wheat rates at peak in local market in Punjab: selling at Rs 3,800-Rs 3,900 per 100-kg against official fixed-rate of Rs 32,000 per ton; the KP will cause additional burden Rs 3billin on provincial kitty, by purchase wheat from Passco. He said Punjab has intentionally blocked supply of wheat, while local wheat stocky took advantage from the situation.
The provincial food department, the official said, has stocked a total of 150,000 ton wheat, including 63,000 new purchases in current season at major godown in Peshawar, DI Khan and Nowshera and storage capacity centres across the province. He further informed the wheat releases will start from September 09, while the flour millers also prefer to direct purchase from local market of KP and Punjab.
It is pertinent to mentioning here that 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 missed due to prevailing high price in open market and the food department inability to purchase required food commodity in this season.