ISLAMABAD, July 19: In order to stabilise flour prices in the country, the federal government on Wednesday directed the provinces and Passco to start releasing wheat stocks to mills imme-
diately.
Normally stocks are released in September and August. However, in view of the sufficient stock available with public sector agencies, the Centre has asked the provinces and the Pakistan Agricultural Supply and Storage Corporation to release the commodity immediately.
"Provinces have been asked to ensure a free and liberal release of wheat throughout the year to stabilise domestic prices," Food and Agriculture Minister Sikandar Hayat Bosan said here at a news conference.
The ministry for food, agriculture and livestock (Minfal) has also announced the intervention price of Rs306 per 40kg for paddy Irri-6 (rice). Last year, paddy prices were around Rs270 per 40kg. Minfal has announced this keeping in view the cost of production, export parity prices and competition in the international market.
In reply to a query, Minfal secretary Ismael Qureshi said the government would not allow the export of wheat until it was sure that such a move would not escalate domestic flour prices. "We would avoid any such decision that is going to affect our domestic consumers," Mr Qureshi said.
When asked about the ongoing controversy between India and Pakistan over the registration of super Basmati rice as geographical indication (GI), Mr Qureshi said India had proposed the registration of super Basmati as a joint GI. "We have yet to decide on the Indian proposal. But, as far as I know, there is not even a single example of registration of any joint GI by two countries under the Trade Related Intellectual Property Rights (TRIPS) of the WTO," he maintained.
Mr Bosan said wheat situation in the country was quite comfortable due to sufficient stocks. As on July 16, a wheat stock of 6.547 million tons is available with the public sector, compared to 4.164 million tons last year.
This year, Passco and food departments of Sindh and Punjab have procured 4.514 million tons as against 3.938 million tons last year. The private sector, he said, had also procured 1.358 million tons in the form of pledged and hypothecated stocks through assistance from the banking system. "The purchase from their (private sector) own revenue is over and above this figure," the minister observed.
He pointed out that Minfal in collaboration with the provinces was closely monitoring prices of wheat and flour in the country. The minister said rice exports might go up to 10 per cent this year from the existing six per cent, as production this season had touched 5.5 million tons -- 10 per cent higher than last year.
Pakistan exported 3.6 million tons of rice last year valuing at $1.1 billion. Mr Bosan said rice production in the country had increased by 42 per cent during the last five years.
