ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet is all set to approve enhancement of wheat target by 0.40 MMT to 1.80 MMT from 1.40 MMT along with fresh Cash Credit Limit (CCL) amounting Rs41.50 billion to procure additional quantity, well-informed sources told Business Recorder.
The Ministry of National Food Security and Research, in its proposal to be considered on Tuesday (today) has informed that the ECC of the Cabinet in its meeting held on April 5, 2024, allowed PASSCO to procure 1.40 MMT of local wheat from growers at the profitable support price of Rs3,900/40kg with the CCL of Rs169.00 billion. The above decision of the ECC was ratified by the Federal Cabinet on April 17, 2024.
In compliance with the direction of the ECC of the Cabinet, the PASSCO started to procure wheat from growers as per centre-wise allocation made by PASSCO at the provincial level. In order to mitigate the grievances expressed by the farming community regarding delay in the procurement process by the provincial governments, a consultative meeting was convened on 29-04-2024 under the chairmanship of the minister for NFS&R with the PASSCO.
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In the meeting it was decided that Ministry of National Food Security and Research shall move a summary to the ECC of the Cabinet for enhancement of wheat procurement target from 1.40 to 1.80 MMT along with CCL for procurement of the additional quantity of 0.40 MMT.
The PASSCO has reported that a quantity of 1.62 MMT is in balance as of April 29, 2024, comprising 1.27 MMT carry-forward stock and fresh procurement of 0.44 MMT. It is also reported that a quantity of 0.079 MMT has already been released. The PASSCO has submitted its request regarding procurement plan of new allocation of 0.40 MMT among procurement centres of provinces alongwith CCL of Rs41.50 billion.
However, it has been clarified by the PASSCO that the requisite amount on account of procurement of additional 0.40 MMT will be adjusted against the receivable amount received from the recipients for which CCL for the quarter from April-June2024 has already been approved by the Finance Division.
The Ministry of NFS&R has supported the proposals of the consultative meeting convened by the minister for National Food Security and Research with the PASSCO and recommended to increase procurement target from 1.40 to 1.80 MMT along with Cash Credit of Rs41.50 billion for purchase of additional quantity of 0.40 MMT.
However, PASSCO has clarified that the requite amount on account of fresh CCL will be adjusted against the receivable amount from recipients. Therefore, no amount for additional procurement is required for PASSCO. Summary was submitted to the Finance Division for obtaining their views and comments.
However, during the meeting of the prime minister with the PASSCO team held on May 4, 2O24, at Lahore, the Finance Division concurred with the proposal of the MNFS&R on the grounds that fresh CCL amounting Rs41.50 billion for procuring additional quantity of 0.40 MMT by PASSCO will be adjusted from the receipts of the receivables of PASSCO.
Copyright Business Recorder, 2024