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 Flour crisis Bigwigs swindle Rs 6 billion

Monday, September 24, 2007
Growers’ lobbies strongly oppose probe; Pak wheat also seen in Uzbekistan

By Khalid Mustafa

ISLAMABAD: Towering political figures, both on the treasury and the opposition benches, have been found involved in the ongoing wheat and flour crisis, having managed to swindle around over Rs 6 billion by hoarding and then smuggling the commodity to the neighboring countries, top official sources in the finance ministry told The News.

“This year the country had received a bumper wheat crop of 23.5 million tonnes. But the citizens of Pakistan are still going through an ordeal during the holy month of Ramazan. They have to run from pillar to post to get this essential staple food item. This commodity has just disappeared and if at all it is available, it is at an exorbitantly high price,” the sources told The News.

“This time influential growers and floor millers, who are also big political figures, hoarded about 1-2 million tonnes of wheat. This should be very alarming for the incumbent regime that will face the music on this account in the forthcoming elections,” the sources said.

“Although, there is some relief in the prices in the wake of some belated measures taken by the government but it is feared that the measures might be short-lived, as the smuggling of wheat and flour still continues unabated,” the sources added.

Commenting on the decision to import 1 million tonnes of wheat and fast releases of wheat from the government stocks to flour mills that have helped to provide some relief to end-consumers in prices, the sources warned the question remains as to whether the government would import one million tonnes of wheat or even less, as a strong lobby in the cabinet might dictate the decision.

The sources said that the opposition parties had more or less also joined the government’s ‘unscrupulous figures’ in this loot as they had not come out with any protest worth the name against the crisis. Rather, political parties have left the masses in the lurch to bear the bite of inflation.

The sources said that on this occasion, rice millers also came out and went for massive wheat buying after earning lot of money because of the huge profits from the sale of rice at very high rates. They hoarded wheat and with the connivance of ministers, both in the federal and provincial governments, they managed to smuggle the commodity, as the said ministers are also landlords, big growers and also possess flour and rice mills.

It is pertinent to mention here that the government has decided not to constitute a commission to launch a probe into the wheat scam, as major chunk of ministers and politicians with agriculture background are not in favour of such a move and these are the very elements that barred the government from imposing 30 to 35 percent regulatory duty on the export of flour to Afghanistan.

Despite the clear-cut direction of Prime Minister Shaukat Aziz, the smuggling of flour and wheat goes on unchecked. The growers who possess flourmills in Sukkur, Hyderabad and Mirpur Khas in Sindh have successfully managed to smuggle wheat and flour to India.

Iran’s market is also flooded with Pakistan’s wheat as Tehran is busy in massive buying of wheat as it wants to build its food stock in the wake of the US threat of attack, a development also confirmed by a senior official.

This is first time in the last 15 years that Pakistan’s wheat has also been seen in the market of Uzbekistan.

Sources said that the official export of flour to Afghanistan amounts to $38 million, but massive smuggling is still going on with the help of Rangers and Customs officials are making money out of it. Trucks carrying wheat and flour can been seen right now at Torkham post.

The NWFP and Balochistan governments have also helped smuggle out 5 million tonnes of wheat that could cater to the needs of Taliban fighting against the Karzai government, said the sources.

The commission (illegal gratification) charged by Rangers and Customs officials who facilitate the illegal outbound movement of the commodity has increased manifold per truck. Before the new directives of Prime Minister on launching crackdowns on hoarders and increasing vigilance on borders, Rangers were receiving around Rs 15,000 to Rs 20,000 per truck as commission but now they have increased their commission to Rs 40,000 per truck, as the profit margin in selling wheat and flour in international market is 100 percent high. One truck carries 35 tonnes of wheat or flour.

APP adds: Agriculture Development Commissioner (ADC) in the Ministry of Food, Agriculture and Livestock (MINFAL) Dr Qadir Bux Baloch on Saturday said that there was no wheat crisis in the country adding that one million tonnes of wheat would be imported to fulfill the local needs.

He conceded that wheat had been smuggled out of the country because of high price across the border. He said Iran was the main destination as it was amassing stocks in view of the US threat of attack.

 
 
 
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