ISLAMABAD: The federal government said on Wednesday that it would take fiscal, financial and administrative measures to bring stability in the prices of essential commodities as there was no shortage of wheat and sugar in the country.
Addressing a new conference, Minister for Foreign Affairs Shah Mahmood Qureshi, Minister for National Food Security and Research Syed Fakhar Imam, and Minister for Industries and Production, stated that there was no shortage of wheat in the country as five million tons of wheat was available with the provinces, the PASSCO. According to them, some people have been making windfall profits by airing speculations. Qureshi said the federal government was serious to bring down prices, while acknowledging that people had been experiencing a difficult situation due to undue increase in the prices of essential commodities.
He added the meeting of the Economic Coordination Committee (ECC) of the Cabinet would be held on Monday to review Minimum Support Price (MSP) of wheat, while keeping in view international prices and country’s need to encourage farmers to increase its production.
He said there was no doubt that international prices were on the higher side, and this also was a fact the cost of production had also increased.
The minister further added that although bringing stability in the prices was a responsibility of the federal government, the federal government cannot do it alone, and the provinces would have to play their role as well.
The federal government can provide relief in taxes, which it did by allowing sugar import at zero taxes, he added. The minister said that speculations in the market by some people to make windfall profits had been affecting the ordinary citizens. He gave a message to the people involved in it that they would face economic loss, if they continued this practice as there was no shortage and the government would ensure supply of adequate stock.
Our requirement till April 15 is six million tons of wheat, and there is sufficient stock of wheat, and 1.7 million is also being imported, he added.
He said that Prime Minister Imran Khan had directed that there was no issue of stock, and asked the provinces to increase release of wheat to mills.
The Punjab government has decided to release additional 2,000 tons of wheat to flour mills on a daily basis, and finally the Sindh government had also decided to release their stock.
He said the government had also decided to ascertain the actual situation Tiger Force because some time government officials provided inaccurate information, and data so far received from different cities shows that the prices are on the higher side.
He said the provincial government’s role was very important because they had to take action against hoarding, adding that prices would also be monitored by district administrations.
Minister for National Food Security and Research Syed Fakhar Imam said: “We will import 1.7 million tons of wheat by the end of January through TCP and government and government from Russia,” adding that there was three million tons of stock with Punjab, 1.2 million tons with Sindh, 0.5 million tons PASSCO, and around 0.2 million tons is with KPK and Balochistan.
He said the total consumption of the country for the next six month was around six million tons of wheat.
He said wheat was also available with private sector, adding that “if there was availability then what was the reason for the price increase”.
He said t the major reason was the difference between global and local prices, and demand outside Pakistan was quite high because of which prices could not stabilise.
He said that some people had been taking advantage of the situation at the cost of the common man. He added: “the government’s duty is to pinpoint those people and magisterial system in this regard on ground is with the provincial governments”.
There is no shortage of wheat while the release of this commodity is also increasing.
Minister for Industries and Production Hammad Azhar stated that for the first time in June physical verification of sugar mills started. According to him, it is quite possible that some sugar mills are showing higher stocks to take loans or subsidy.
He said that prime minister had been holding weekly meetings, and in each meeting Sindh was being requested to start physical verification of stocks.
The minister regretted that despite requests, the Sindh government had not started physical verification of sugar mills’ stock.
“We have arranged sugar import at zero percent tax, and 1.5 million tons is being imported by the private sector, and 55000 tons has already arrived in the country and one lac tons will be arriving soon, he added.
He said the government has been importing sugar through TCP that would be released at controlled rates in the market and its rate would Rs10 to Rs15 per kg less than the market price.
He said the government has also decided that crushing season would start from November 10, adding that there would be a heavy fine per day on those sugar mills that failed to start crushing on time. He said Punjab government had adopted a legislation in this regard but Sindh had not taken a similar step.
Sugar cane price has been notified at Rs200, he said, adding that the government would import more sugar when the need arises.
APP adds: The Foreign Minister said that the government was not oblivious of its responsibility of brining in stability in the prices of basic essential items including wheat and sugar and was taking all possible measures in that respect.
Attributing the current increase in the prices of wheat, flour and sugar to the gap in demand and supply that caused speculation, he said the government would not let the hoarders and profiteers to benefit from the situation through various administrative measures
The Foreign Minister referred to decisions taken during the high-level meeting presided over by Prime Minister Imran Khan on Tuesday and said that in order to check the price of wheat flour the government of Punjab would release an additional 2000 tons of wheat to the flour millers on daily basis.
Besides, he said the government of Sindh has also finally decided to release 10,000 tons of wheat per day from its stocks which would help stabilize the supply and prices of wheat and wheat flour in Karachi and interior Sindh.
The Foreign Minister said though the federal government was taking all possible measures to check the prices of essential items, adding, however, a well-coordinated and joint effort of the federal and provincial governments was needed for stabilization of prices in the country.
About sugar, he said the federal government had taken various measures including allowing zero-rate import of the commodity to check its prices.
The Foreign Minister said that the government, in order to benefit the poor and low income groups, would also ensure increased availability of wheat flour and sugar at subsidized rates at utility stores outlets across the country.
To a question, Qureshi said, the opposition after failing to get relief or NRO (National Reconciliation Ordinance) through amendments in NAB (National Accountability Bureau) had changed their views and were now criticizing the government on different issues.
He reminded the opposition parties that the current situation in different sectors including that of agriculture or others was in fact a backlog of the two previous regimes.
Copyright Business Recorder, 2020