The government is likely to revise upward wheat procurement target for Passco to 1.5 million tons from 0.8 million tons for the current fiscal year to avoid backlash of farmers which entails a financial impact of Rs 24 billion, it is learnt. Sources said during a meeting the request for upward revision in wheat procurement target was made by the Punjab government.
They added that the Ministry of National Food Security and Research (MNFSR) has moved a proposal to the Economic Coordination Committee (ECC). The ministry stated that a meeting presided over by the Punjab Chief Minister has desired that federal government (Passco) needs to revise its target upwards and procure 1.5 million tons instead of 0.8 million tons of wheat (as already fixed by the ECC) to avoid backlash of farming community. The Ministry of NFS&R has moved a summary for the Chairman ECC/Finance Minister to solicit permission for enhancement of Passco''s wheat procurement target. The Chairman ECC/Finance Minister desired to bring the matter before the ECC of the Cabinet. The ECC was informed that the estimated financial impact of additional 0.7 million tons would be around Rs.24 billion.
A meeting of the Wheat Procurement Committee 2015 was convened by the Punjab Chief Minister on 30-03-2015 at 180 H, Model Town Lahore. The meeting was inter alia attended by the MD Passco and Secretary Ministry of NFS&R. A large number of MPAs and MNAs had also been invited to the meeting.
The Secretary, Food Department, Government of Punjab made a detailed presentation on Wheat Procurement Policy 2015. Secretary Food Department of Punjab contended that there was forecast for a very good wheat crop for the year 2014-15, which was estimated at around 25.9 M Tons and since more than 1.5 million tons of old stocks were still available, the purchase of new crop posed a huge challenge.
The meeting was held in the Ministry of NFS&R on 17th February, 2015 wherein the provincial governments agreed to fix a target of 4.5 million for Punjab, followed by 0.9 million tons Sindh, 0.3 million tons KP, 0.1 million tons Balochistan and 0.8 million tons Passco. These targets were approved by the ECC in its meeting held on 19th March, 2015. Subsequently, Punjab reduced the procurement target from 4.5 to 4.0 million tons. The total public procurements of 2014-15 would, therefore, be around 6.1 million tons.
After the briefing by the Food Department Punjab, the Chief Minister discussed the situation with the public representatives and most of them insisted that the government must ensure procurement of entire surplus wheat from farmers.
The Chief Minister observed that federal government had fixed the target of 1.5 million tons last year, whereas it has reduced its procurement target to 0.8 million tons. Secretary, Ministry of NFS&R explained that Passco already has the wheat reserves of 1.2 million tons and the targets for this year''s procurement were fixed in view of physical and fiscal space available with Passco. The Chief Minister, however, desired that federal government (Passco) must revise its target upward and procure 1.5 million tons instead of 0.8 million tons of wheat to avoid a backlash from the farmer''s community.
The chairman of the ECC was requested to accord anticipated approval for procurement of additional 0.7 million tons of wheat by Passco. The formal approval will be sought by the Ministry of NFS&R by submitting a summary in ECC''s forthcoming meeting. It has been explained that the financial impact of additional 0.7 million tons would be around Rs. 24 billion (on account of bank borrowing and logistics arrangements to be made by Passco).
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