Curious case of wheat import from PDM govt to incumbent regime

LAHORE: Three successive governments, including incumbent regime, have played their part in completing contentious process of wheat imports since July 2023, as per information available with The News.

According to an official chronology of wheat imports compiled by the Ministry of Food Security & Research (NFS&R), more than 2.4 million tonnes of wheat was imported under the watch of former caretaker minister Dr Kausar Abdullah Malik. However, the process of granting permission for the wheat import was initiated on July 13, 2023 during the PDM government. The process was ultimately completed after granting approval of anchoring last ship by the incumbent federal government on March 26 this year.

Commenting on the development, sources made it clear that wheat imports were indispensable for bridging the shortfall in demand and supply of commodity during marketing year 2023-24. The government spent nothing on import of wheat nor did it pay a single penny on subsidy. Rather, private buyers imported wheat on their own while arranging finances. Moreover, imports by the private sector greatly helped in keeping the wheat prices in check. However, they added, decision of allowing imports becomes an irritant only due to callous attitude of the authorities concerned who failed to contain its quantum within the permissible limit. These high-ups completely ignored the projection of upcoming healthy wheat crop and failed to adjust volume of imports accordingly.

A timeline of events related to wheat import during 2023-24 noted some 28 different developments spanning about eight months between July 2023 and March 2024. During this period, three back-to-back meetings were convened to discuss and grant extension in import’s duration.

The matter of allowing extension in wheat import till end of March 2024 was first floated in the 3rd Wheat Board meeting held on February 14, 2024. During the discussion, the meeting was told about the proposal of granting extension in wheat imports from February 28, 2024 to March 31, 2024 due to ‘unavoidable circumstances’, including harsh weather as well as law and order situation in Red Sea. As many as 42 vessels carrying 2.133 million metric ton (MMT) private wheat arrived till that date and 0.50-0.60 MMT was in transit.

Sources said that it was the time when imports should have strictly been regulated by the ministry through coordination with departments concerned. However, the untamed imports continued business as usual following lobbying made by the private sector.

Later, Cereal Association of Pakistan (CAP), Pakistan Flour Mill Association (PFMA) and Wheat Traders Association (WTA) delegates met with the then minister and secretary MNSFR on February 19, 2024 regarding the extension of import period from February 28, 2024 to March 31, 2024 for in transit vessels. The fourth meeting of the Wheat Board held under the chair of the minister MNFS&R on 23rd February ,2024 discussed the issue and it was decided that extension would be given only those vessels which were in transit and would reach on or before the 31st March, 2024 and in line with the list provided by the associations. No further import would be allowed after the date in any case.

However, the belated resolve shown by the authorities to contain imports proved to be shortlived and on 26th March, 2024, the fifth meeting of the Wheat Board was convened under the chair of the finance and revenue minister to allow the inspection of MV CYCUS vessel, which was overlooked in the list provided by the association and arrived within the deadline given in the previous meeting.

In order to initiate wheat imports, the minster MNFS&R of PDM government drafted and approved a summary for the import of wheat in 2023. Circulation of the said summary was made among ministries for review and comments. On July 27, 2023, MNFS&R submitted summary to the ECC for the import of 1.00 MMT milling wheat through TCP to maintain the strategic reserves of PASSCO in the first phase either through G2G or open tendering. On August 08, 2023, ECC deferred the summary and the PDM government could not formally commence wheat import operation.

During the interim set up, on September 01, 2023, it was noted that due to rising prices of wheat flour to 2800 per 20 KGs bags, MNFS&R sought approval from PMO to place the summary to the ECC as the prime minister was minister in-charge of MNFS&R. On September 04, 2023, the PMO approved the request to place the summary in the ECC with instructions to have clear import plan by private and public sector.

On September 05, 2023, as per PMO directives, meeting notices were issued to public and private sector for consultation. On September 06, 2023, two separate consultative meeting with private sector and public sector were conducted.

Later, on September 12, 2023, the summary was resubmitted to the ECC after incorporating the recommendations of public and private sector. Nevertheless, on September 27, 2023, the Ministry of Finance’s response received in which Finance Division did not support the proposal of wheat import through TCP and supported the import of wheat through private Sector as it could perform the function more efficiently.

On December 19, 2023, in the second Wheat Board meeting chaired by the minister MNSFR, progress of private wheat import to bridge the gap of 2.40 MMT was reviewed and the department of plant protection reported the arrival of 25 vessels carrying 1.269 MMT wheat till December 17, 2023.

On 28th December, 2023, MNSF&R after reviewing the demand and supply situation of wheat in the country moved a summary to the ECC with a proposal to withhold the matter of public wheat import through TCP in wake of projected wheat production and carryforward stocks with public and private sector.

When contacted for seeking his version over alleged role in allowing wheat import in excess, Dr Kauser Abdullah Malik, Interim Federal Minister for National Food Security & Research, asked this scribe to contact Secretary MNFS&R Capt (retd) Muhammad Asif or Imtiaz Gopang, Food Security Commissioner, who, according to him, was in-charge of wheat affairs. He added that he could discuss the issue only after returning from abroad. However, both the officials were not available for comments.