Punjab meets over 50 percent of revised wheat buying target

LAHORE: Punjab Food Department has purchased 2.66 million tons wheat, achieving 54 percent of the revised grain procurement target of 3.84 million tons till May 16, 2019, The News learnt on Friday.

Only 272,616 or 35.26 percent of the total 773,000 registered growers have been accommodated in the procurement drive so far. This trend clearly suggests that bulk of wheat is being procured from the middlemen instead of growers.

The provincial food department has yet distributed gunny bags for buying 3.031 million tons of wheat, which is 79 percent of the target. The daily buying of wheat on May 16 stands at 166,059 tons, while issuance of gunny bags turns out to be 110,466. These figures indicate that wheat procurement has already touched a peak, while it has hardly completed two weeks of operation.

On account of wheat procurement, food department so far paid Rs49.110 billion to grain sellers. The payment made in this regard on May 16 alone stood at Rs9.692 billion.

Dera Ghazi Khan Division, comprising DG Khan, Rajanpur, Muzaffargarh and Layyah districts, led the procurement with 0.356 million tons, closely followed by Bahawalpur Division, comprising, Bahawalpur, Bahawalnagar, and Rahim Yar Khan districts, with 0.355 million tons of wheat procured.

Multan Division, comprising Multan, Lodhran, Vehari and Khanewal districts, remained at third position in terms of quantity purchased, with 0.351 million tons wheat.

Talking about lowering of wheat procurement target, an official said the target has been revised down by just about five percent. However, he indicated that the department might be able to buy 3 million to 3.5 million tons of wheat.

With a carryover stock of about 1.55 million tons, the food department will hardly be able to meet grain requirements of the province in the ensuing year.

This is a huge challenge, especially to the keep price of wheat flour at reasonable level and may haunt provincial government in the days to come, adversely affecting food security of the province.

However, Secretary Food, Naseem Sadiq is been optimistic about fulfilling the demand. Sadiq said he will ensure availability of wheat as and when needed while formulating wheat release policy for the flour mills.

Meanwhile, provincial government continued its campaign against what it called hoarding of grains across the province. Action has been taken against the hoarders of wheat in 12 different districts so far. During the crackdown conducted for ten days 2.5 million maunds (one maund is equal to 40kgs) of wheat was taken into custody. On the other hand, in an official statement, it is claimed that provincial Food Department will achieve wheat procurement target for the 2019-20 crop with an allocation of Rs130 billion.

Following intense rains and storms, wheat crop has suffered a setback and the overall production was damaged by about five percent. Losses in Punjab appeared to be on the higher side and would precisely be known after 2-3 weeks because crops in many parts are still in the open fields.

To assess exact figures of losses, all the district revenue officers have been directed to complete assessment of losses caused to wheat crop in the province and submit their reports to the government. This process will help compensate the affected farmers properly.