Ministry accused of presenting inaccurate data of wheat stock?

One of Prime Minister's top aides has reportedly accused Ministry of National Food Security and Research of presenting incorrect data of wheat stock and releases to the flour mills.

These concerns were raised during a meeting of Economic Coordination Committee (ECC) of the Cabinet held on April 13, 2020 with Prime Minister's Advisor on Finance, Dr, Abdul Hafeez Shaikh, in the chair.

The recent wheat inquiry report also raised several questions about the decision making at the federal level after which Secretary National Food Security and Research, Dr. Hashim Populzai was made an OSD whereas the Minister, Makhdoom Khusro Bakhtiar, was given another potfolio.

Ministry of National Food Security and Research, in its summary stated that ECC on November 13, 2019 decided to allow Passco to release 200.000 M.tons of wheat to Utility Stores Corporation (USC) and subsequently it was decided to allow USC to lift this quantity upto May, 2020 instead of March 31, 2020 i.e. end of crop year. USC has managed to lift 140,722 M. tons upto April 6, 2020 with the balance of 59,728 M. tons.

Ministry of National Food Security and Research further revealed that USC has requested an additional quantity of 200,000 M. tons in the current situation of Covid-19.

The Ministry also claimed that the stock position of Passco as on April 7, 2020 was 208,835 M. tons and keeping in view the commitments, Passco would not be able to meet the additional requirement of USC till the completion of procurement drive in the new crop year.

However, keeping in view the critical situation, an additional allocation of 50,000 M. tons was proposed for USC from the existing stocks( old crop) of Passco. The remaining quantity of 150,000 M. tons was proposed to be provided from the fresh crop subject to the completion of procurement drive. Ministry of National Food Security and Research stated that the cost of additional wheat of 200,000 M. tons would be Rs 8.690 billion ( @ Rs 35,000 per ton) including incidental cost of Rs 1.690 billion ( @ 8448.98 per Ton).

Following proposal was submitted to the ECC for consideration -USC may bear the total cost including incidentals within the overall package announced for USC by federal government or USC may bear the cost of wheat and incidentals may be equally shared by the Finance Division and USC.

During a discussion, Advisor to the Prime Minister on Institutional Reforms and Austerity Dr. Ishrat Hussain expressed his concern over the non-availability of correct/updated data on the wheat stock, procurement of wheat and release of wheat to the flour mills and data of grinding Atta by these flour mills.

He argued that this data was essential for making an informed decision by the ECC. He emphasized that concerned Ministry/ Division must ensure provision of authentic data on wheat/ flour to the ECC. He suggested that the proposal for additional quantity of 200,000 M. tons of wheat may be approved with direction to Passco to release 50,000 M. tons of wheat to USC immediately and the remaining 150,000 M. tons of wheat may be released in phases by Passco on the demand of USC.

Minister for Railways Sheikh Rashid Ahmed emphasized computerization of the data of Passco (for efficient management of wheat procurement and release) and USC (to enter availability of Atta in all utility stores across the country including all essential food items). He also impressed upon Passco for provision of Ganni bags to farmers for wheat.