The federal government has decided to take provinces on board to finalise 6.5 million tons wheat procurement plan after Sindh refused to allow Pakistan Agriculture Storage and Services Corporation (Passco) to procure wheat. The Center has invited all provincial food and agriculture ministers and secretaries to seek their input on the wheat procurement plan and remove differences at a high level meeting of the Cabinet task force scheduled to for today (Tuesday).
The meeting will also review the strategy to advance loans to the private sector for wheat procurement. Earlier the task force was scheduled to meet on February 13. Federal Food and Agriculture Minister Nazar Muhammad Gondal will chair the meeting. The proposals for wheat procurement will be finalised and put before the Economic Co-ordination Committee (ECC) of the Cabinet in its next meeting. The task force has the mandate to draw strategy to implement the Cabinet decisions regarding agriculture.
The meeting would also be attended by information minister Sherry Rehman, foreign affairs minister Shah Mahmood Qureshi, railways minister Ghulam Ahmed Bilour, privatisation minister Syed Naveed Qamar, deputy chairman Planning Commission Sardar Asif Ahmed Ali, livestock minister Humayun Aziz Kurd, minister of state for finance and economic affairs Hina Rabbani Khar and advisor to Prime Minister on Finance Shaukat Tarin.
Sources told Business Recorder that the Centre wants Passco to procure wheat in all growing areas of Punjab and Sindh but Sindh has resisted the move. Federal government fears that wheat procurement target of 6.5 million tons would not be achievable if Sindh did not allow an open access to Passco to procure wheat in all wheat growing areas. Sources also noted that the Food and Agriculture Ministry had taken up the issue with the Prime Minister and the provinces' viewpoint would be sought in the meeting following the directions of the Prime Minister.
During the last meeting of the ECC, wheat procurement policy was tabled but the ECC directed the Food and Agriculture Ministry to hold further deliberations on the wheat procurement plan in consultation with the provinces. Sources said that federal ministers from Sindh had also opposed to allow Passco to procure wheat in all growing areas of Sindh. Sindh has denied Passco to procure wheat saying that it is already looking for wheat towards Punjab and wheat imports to meet its requirements. If Passco is allowed for wheat procurement in Sindh province, it would face wheat shortage.
According to initial estimates, Punjab will be tasked to procure 3.5 million tons, Sindh 1.20 million ton, NWFP 0.30 million tons and Balochistan 0.05 million tons. Passco will have to procure 1.5 million tons. Last year Passco failed in achieving wheat procurement target of 5 million tons and managed to procure only 3.9 million tons against wheat procurement target. The main rationale behind this failure in procurement was higher price of the commodity in the international market.
The government has set the target of 25 million tons wheat production as the wheat was grown on the more area due to attractive support price of Rs 950 per 40 kg by the present government. The task force would also review the situation of major cash crops wheat, rice, cotton, sugarcane and develop strategy for these major crops. The steps taken by the Ministry of Food and Agriculture and other concerned authorities would be reviewed to ensure food security in the country.