ISLAMABAD: Ministry of Commerce (MoC) has reportedly blocked a move of Ministry of National Food Security & Research (MoNFS&R) regarding import of additional quantity of 380,000 MT of wheat for AJ&K and USC in April-May 2021, well informed sources told Business Recorder.

Sharing the details, sources said that PASSCO during the current wheat year (May 1, 2020 - April 30, 2021) committed to provide wheat to Azad Jammu & Kashmir (AJ&K) and Utility Stores Corporation (USC) as per approval of ECC on April 13, 2020 for USC. The quantities committed / lifted by AJ&K and USC upto December 13, 2020 was 236,592 MT and 197,377 MT respectively against allocated quantity of 237,000 MT and 200,000 MT.

According to MoNFS&R, USC urgently needed additional 300,000 MT of wheat in order to manage Atta supply at subsidised rates under the Prime Minister's relief package, adding that this would enable USC to facilitate the general public/poor segment of society by providing Atta at lower rates as compared to open market price. Similarly, AJ&K Government noted that due to substantial hike in the price of wheat and wheat flour in the open market, demand for subsidised wheat flour provided by the Food Department, AJ&K had increased. To cope with the situation, AJ&K Government has requested additional quota of 80,000 MT for the remaining period of the crop year. PASSCO apprised that its stocks were already over committed, therefore, the gap may be met through imported wheat.

Ministry of National Food Security and Research proposed that additional quantity of 380,000 MT of wheat (80,000 for AJ&K and 300,000 for USC may be allowed to be imported through tendering process by the Trading Corporation of Pakistan by waiving off taxes and duties. The entire cost of imported wheat would be borne by the respective recipient agencies.

During the ensuing discussion, Special Secretary, Commerce Division, Dr Muhammad Sohail Rajput while opposing the proposal of import of additional quantity of wheat stated that local wheat would also be available in the market and provincial governments would be buying it at the support price. Therefore, there would be high probability that recipient agencies would refuse the imported wheat in April-May 2021.

Moreover, there was a need for realistic determination of demand as the total import of wheat, to date, had reached 2,155,659 MT. Therefore, additional demand must be consciously calculated viz-a-viz availability of local wheat crop in March-April 2021 and also keeping in view high prices of wheat in the international market.

The ECC, in its meeting held on December 16, 2020 deferred the summary submitted by the Ministry of National Food Security and Research with the direction that as an interim arrangement, a quantity of 30,000 MT wheat may be provided to the Government of AJ&K and Utility Stores Corporation each, keeping in view present wheat shortages in the country.

Copyright Business Recorder, 2020