ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet considering the summary submitted by the Ministry of National Food Security Research regarding report on wheat situation in the country had allowed Pakistan Agricultural Storage and Services Corporation (PASSCO) to release 0.250 million tons of wheat to Sindh & KP (0.1 million tons for Sindh and 0.150 million tons to KP).
The notification dated 23rd of October, 2019 issued by Muhammad Azeem Hakro, Food Security Commissioner-II, reads: “The competent authority is pleased to notify the decision of the Economic Coordination Committee (ECC) of the Cabinet in Case No. ECC-331/29/2019 dated 2-10-2019 regarding report on wheat situation in the country.
“The Economic Coordination Committee (ECC) of the Cabinet considered the summary dated 1st October 2019 submitted by the Ministry of National Food Security and Research regarding Report on wheat situation in the country and allowed PASSCO to release 0.250 million tons of wheat to Sindh and Khyber Pakhtunkhwa (0.1 million tons for Sindh and 0.150 million tons to Khyber Pakhtunkhwa).
“The incidental charges of PASSCO @ Rs. 8448.98 /ton would be equally shared by the Federal and Provincial Governments of Sindh and Khyber Pakhtunkhwa Government of Sindh should release stock in the local market in the first instance.
“PASSCO and Provincial Governments of Sindh and Khyber Pakhtunkhwa will also fix modalities for early release of wheat.”
A relevant piece published earlier:
Flour prices augment as Sindh Govt. fails to procure wheat
KARACHI: Flour mills owners, while augmenting the prices of atta, blamed Sindh Government for the hike.
Despite good crop and sizable stocks in godowns of the country, millers justify their move by lamenting that they are forced to buy the wheat from market as Sindh Government failed to procure wheat from growers this year. They maintain unless the Government of Sindh releases at least a hundred thousand tons of wheat from its stock, the augmenting flour prices could not be contained.
Khalid Masood, Chairman Pakistan Flour Mills Association (PFMA) claimed though Sindh Government claimed to harbor a stock of 8,32,000 tons of wheat in stock, there was no wheat in the godowns. He insinuated that the said stock existed only on papers.
PFMA Chairman, informing that in the previous years Sindh Government used to buy 10, 00, 000 tons of wheat from the growers, held that this year, despite carry-over stock, it should have procured half a million to 600,000 tons of wheat.
Till April, 2019 a bag of 100 kilograms of wheat was available for Rs.3000. The same, according to PFMA Chairman Khalid Masood, presently costs Rs.4,300. He warned if the Government of Sindh did not release stocks immediately the pressure on prices would persist.
It is pertinent to mention here that attempting to contain the swelling prices back home, in the third week of September the Government has decided to continue with the ban on wheat exports. As a result wheat export shrunk to 44, 134 tons fetching 10.5 million dollars in July-August, 2019.
It may be recalled that earlier Pakistan exported 2,29,243 tons of wheat earning foreign exchange worth 49 million dollars.
Cabinet’s Economic Coordination Committee has ordered release of 3,50,000 tons of wheat in the month of October (2019) to check the prices. Approving a proposal of the Ministry of National Food Security the Economic Coordination Committee had directed the Government of Sindh to release 100, 000 tons of wheat subject to the condition that it would also release another 100, 000 tons of wheat from its own stocks.