ECC fixes Rs3,900/40kg wheat procurement price

ISLAMABAD: The Economic Coordination Committee of the Cabinet (ECC) on Wednesday granted approval for the procurement of 1.8 million tonnes of wheat by Passco with cash credit limit of Rs201 billion at the price of Rs3,900 per 40 kg.

Federal Minister for Finance and Revenue Senator Ishaq Dar presided over the meeting of the ECC.

Passco procures wheat from Punjab, Sindh, and Balochistan and provides it to deficit provinces/ areas and agencies. It is responsible for maintaining the strategic reserves of the country. Procurement takes place on the announced minimum support price in accordance with envisaged targets set by the federal cabinet.

The existing Passco stocks of wheat are 1.55 million tonnes. For the remaining import of 612,103 metric tonnes, out of the approved import of 2.65 million tonnes, the total availability with Passco would be hovering around 2.16 metric tonnes. The projected release from Passco stock is estimated at 638,848 metric tonnes, leaving behind the carry-forward stock of 1.32 million tonnes at the start of the new food year on 01-04-2023. The outstanding liabilities of Passco are Rs110 billion.

To procure local wheat for meeting the assigned target of 1.80 million metric tonnes (MMT), Passco requires Rs201 billion.

The PASSCO was assigned a procurement target of 1.2 MMT last year; however, on the direction of the Prime Minister’s Office, the target was increased to 1.7 MMT.

According to an official announcement made after the ECC meeting, the forum considered a summary of Ministry of Inter-Provincial Coordination and granted Technical Supplementary Grant of Rs10 million for medical treatment of Jan Sher Khan, former world squash champion, diagnosed with multiple health issues.

“The ECC approved the recommendation of Ministry of National Food Security & Research to assign wheat procurement target of 1.80 MMT @ procurement price of Rs3,900/40kg. Further the ECC directed MNFS&R to form a committee to review the proper wheat usage, wheat storage mechanism/ silos in the country and present its findings to the ECC in 15 days,” says the announcement.