LAHORE: In a significant step forward, Prime Minister Shehbaz Sharif Saturday came to the rescue of wheat growers amid falling grain prices as Punjab government’s indecision continues to cost them dearly. Following reports about farmers braving losses amid delay in wheat procurement, Shehbaz issued direction to the state-owned Pakistan Agricultural Storage & Services Corporation Ltd (Passco) to start wheat procurement immediately on minimum support price of Rs3,900 per 40kg while significantly scaling up its purchase target by 29 percent.
According to an official announcement, the prime minister increased the federal government’s wheat procurement target of 1.4 million metric tons to 1.8 million metric tons.
Announcing this major step for the farmers before his departure to Saudi Arabia, he ordered Passco to increase the wheat procurement target and ensure immediate procurement.
The prime minister took this step considering the difficulties of the farmers, read an official release. He directed Passco to give priority to transparency and convenience of farmers regarding the purchase of wheat.
On the other hand, the Punjab government seems clueless even two months after coming into power about its responsibilities regarding smooth wheat procurement operation. Being food basket of the country, Punjab province’s share in national production comprised of about 75 percent and provincial food department has been trend setter in wheat market. However, authorities in the province failed to initiate wheat procurement as harvesting drive moved to mid-point in most of surplus grain producing districts.
According to Wheat Procurement Policy 2024-25 approved by the provincial cabinet, Maryam Nawaz-led provincial government adopted timelines for Wheat Procurement Scheme for the ongoing season wherein applications were sought from 13th to 17th of April, Bardana or gunny bags issuance set to initiate from April 19, while wheat procurement/ arrival to start from 22nd of April. However, the provincial government could only launch online portal for seeking application for wheat purchase and there is zero progress on gunny bags distribution and actual purchase of grains.
Owing to inaction by the provincial government, private sector is going to buy most of about nine million tonnes estimated marketable surplus of about 22 million tonnes wheat crop to be produced this year in the province from growers at far less than the minimum support price, leaving farmers in extreme anguish and distress as they face huge losses.
Thus, the main objective of the government’s own policy for current season that ‘The wheat procurement shall be grower friendly’ remains a mere a pipe dream.
So much so, the richest province of the country has as yet failed to arrange credit line from the banks for launching procurement campaign, which show lack of will on the part of authorities concerned, observers said.
More astonishingly, the Punjab Food Department has yet no clue about its procurement target, which shows preparedness of the provincial government as an intervenor in the market. According to approved policy of Food Department, provincial government may keep preparation for procurement up to two million metric tonnes.
However, the Standing Committee of Cabinet on wheat would be empowered to reduce or increase the procurement target depending upon the market conditions. The decision of the standing committee on wheat for revision, reduction or enhancement of target would be subsequently presented before the cabinet for information/ confirmation.