PASSCO, provinces to procure 9m tonnes wheat
21 March, 2013
ISLAMABAD: In a bid to meet the wheat procurement target for 2013, provinces and the Pakistan Agricultural Storage and Services Corporation (PASSCO) have agreed to purchase 9.0 million tonnes from the farmers.
ISLAMABAD: In a bid to meet the wheat procurement target for 2013, provinces and the Pakistan Agricultural Storage and Services Corporation (PASSCO) have agreed to purchase 9.0 million tonnes from the farmers.
Of the total quantity, Punjab has to procure 4.5 million tonnes, Sindh 1.3 million tonnes, Khyber Pakhtunkhwa and Balochistan will buy 500,000 tonnes and 100,000 tonnes, respectively. The state-run agency PASSCO has agreed to procure 2.6 million tonnes, officials in the Ministry of National Food Security and Research told Our Sources on Wednesday.
The agreement to this effect came at a meeting of the wheat review committee that met a few days ago. PASSCO managing director, representatives of provincial food departments and senior officials of the ministry were present during the deliberations.
The committee has been tasked to review overall wheat supply and its stocks with the government. The ministry, in consultation with the stakeholders concerned, will continue to monitor the stocks and supply regularly, the meeting was told. At present, wheat stocks are in surplus, standing at 4.8 million tonnes.
The participants discussed the government's recent move to release 1.0 million tonnes wheat from PASSCO stocks in the domestic market at reduced prices of Rs 1,050 to Rs 1,100 per 40 kilogrammes (kgs) in an effort to arrest rising prices of the commodity. The secretary was told that this had helped improve wheat supply and stabilised wheat and flour prices throughout the country.
The PASSCO chief pointed out that the increase in wheat support price by the federal government from Rs 1,050 to Rs 1,200 per 40 kgs for the crop of 2012-13 had an encouraging effect on sowing. According to estimates, the crop has been planted over a wide area of 8.6 million hectares.
However, sources claimed that the country is likely to miss wheat production target by some 1.5 million tonnes mainly due to a massive decline in cultivation area. The country is likely to achieve a production of 23 million tonnes to 23.5 million tonnes as against the target of 25 million tonnes set by the federal government for 2013.
The delay in the announcement of wheat support price by the government has reduced cultivation area. The federal government had announced that it will increase wheat support price by Rs 150 per 40 kgs from Rs 1,050 to Rs 1,200 per 40 kgs in the third week of November 2012, when wheat cultivation would be almost finished across the country. It is too difficult to achieve wheat production target of 25 million tonnes set by the government.
Despite several requests for early announcement of wheat support price, the federal government made this announcement after the sowing period. Delayed announcement of hike in wheat support price will now result in some 1.5 million tonnes decline in wheat production during 2012-13, the sources added. Wheat sowing had almost ended and the government announced new wheat support price in November 2012, therefore the new and higher support price announcement has not made any positive impact on wheat sowing.
Due to delayed decision on wheat support price, we are expecting a crop of 23-23.5 million tonnes this year against the country's demand of 26 million tonnes, the sources added. This year's target will be missed by 1.5 million tonnes and the overall production will not be higher than 23.5 million tonnes against target of 25 million tonnes. Overall wheat production, during this season, will be even less than last year's production, when the country produced 23.7 million tonnes wheat, the sources added.
Punjab is expected to produce some 18.2 million tonnes wheat against the target of 19.2 million tonnes. Sindh's production is likely to be 3.0 million tonnes over the target of 3.5 million tonnes, while Balochistan and Khyber Pakhtunkhwa are expected to produce 900,000 and 1.3 million tonnes, respectively. The prices of fertilizer, diesel, water, seeds and pesticides have registered a notable increase during the last one year, however the federal government has not increased support price according to increase in the cost of production, he said.
Break-up of procurement
Punjab 4.5m tonnes
Sindh 1.3m tonnes
Khyber Pakhtunkhwa 500,000 tonnes
Balochistan 100,000 tonnes
PASSCO 2.6m tonnes
Total 9.0m tonnes
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