ISLAMABAD: The federal government on Monday blamed provinces for wheat price escalation even at the time of procurement, underscoring need of a strategy to ease concerns of importers over the hoarding law.
“Provincial governments promulgated Anti-Hoarding Act to ensure their wheat procurement drive and to achieve their procurement targets,” the ministry of food security said in a statement.
“This strategy of provinces not only restricted wheat/wheat seed movement but also created panic in the local market. Resultantly, wheat price escalation was observed, even during the months of its procurement.”
The federal government last week exempted imported wheat from anti-hoarding law, sales tax customs and regulatory duties as wheat production runs short of about one million tons and may be around 25.7 to 26 million tons this year, according to an estimate.
There is about 0.7 to 1.0 million tons less output in the Punjab alone if compared with the provincial output target. The Economic Coordination Committee of the cabinet gave a go-ahead to the private sector to import 2.5 million tons of wheat to control prices in the domestic market.
Private sector was allowed to import wheat for unlimited period. Regulatory duty of 60 percent, customs duty of 11 percent, sales tax of 17 percent and withholding tax of six percent were abolished on the import. On the basis of production estimates, a gap of 1.411 million tones was identified between wheat availability and consumption.
“Strategy is being designed in consultation with provinces considering the concerns shown by wheat importers, in addition to steps taken for releases from public sector,” the food ministry said. “Government is continuously working to ensure supply of wheat at affordable prices. Punjab has started their stock at the release price, whereas, sindh has also been contacted to announce its wheat release policy.”
The ministry said it is ensuring supply of wheat at affordable price. The ministry is mandated to arrange the requisite supply of wheat within the country to ensure food security of the country.
Pakistan Agricultural Storage and Services Corporation, an attached organisation of the food ministry, is working continuously to supply wheat to wheat deficit areas. The stock of public sector is being audited.
Food security ministry deals with economic coordination and planning in respect of food, economic planning and policy making in respect of agriculture. It is mainly responsible for policy formulation, economic coordination and planning in respect of food grain and agriculture. It also includes procurement of food grains, ertiliser, import price stabilisation of agriculture produce, international liaison, and economic studies for framing agricultural policies.
Meanwhile, a meeting was told that Pakistan Central Cotton Committeeis focusing on improvement and development of growing, marketing and manufacturing of cotton and cotton by-products, through an extensive program of research and development.
National Fertilizer Development Centre provides objective and comprehensive advice to all levels of government to the fertiliser industry and to other parties as may be relevant, on all matters related in any way to the fertiliser sector of Pakistan and its relations with the international fertiliser community.