LAHORE, March 7: The government will shortly form a permanent export policy to develop wheat market abroad as Pakistan has now entered the surplus regime, according to Punjab Food Minister Husain Jehanian Gardezi.

Speaking at a workshop on the forthcoming wheat procurement policy, which was arranged by the Agriculture Journalists Association (AJA) on Wednesday, the minister claimed that so far seasonal fluctuations in wheat production had hindered formation of such a policy. “With wheat production now stabilising over 22 million ton, the country is now in a position to go about such a plan.”

He said the government had already decided to purchase wheat till last grain instead of setting any target to ensure support price for the farmers. With a view to dealing with corruption complaints during wheat buying drive, he said, the department would establish a 24-hour toll-free line at its headquarters.

Storage facilities of around four million tons of wheat in all surplus districts were being established and during the next three years, the government should be able to receive bulk supplies and do away with yearly purchase of gunny bangs, he said.

Bilal Sufi, a representative of flour millers, said the government had not been able to follow a consistent policy on the private sector’s role in wheat trade. Occasional turnarounds neither helped farmers nor millers nor government. The government, he said, should clearly announce targets and the next release price so that the millers could plan their role on a solid footing.

Its credit policy for millers and decisions on the private sector’s role in building silos for storage also left much to be desired. The millers had, therefore, been finding it hard to justify their place in the government’s scheme of things.

Speaking on behalf of farmers, Ibrahim Mughal of AgriForum said the target set by the government played a vital role in determining wheat market. This year, Punjab would be producing 5.4 million ton surplus wheat and so far it had not come clean on its target. The federal government indicated a target of three million ton and the provincial government had earlier announced 2.5 million ton but later withdrew it.

He demanded that the government should fix a target of 3.5 million ton this year.

Since weight of gunny bags had become a constant source of exploitation for the farmers, Mr Mughal said the government should convey policy guidelines to the farmers and departmental officials. “It should be clearly written at every procurement centre so that the growers are not deceived by any one.”

Hamid Malhi of the Punjab Water Council said the Punjab food department should get out of wheat trade and let the private sector take over. Instead of the government’s wasting over Rs4.5 billion on wheat subsidy, it should provide loan incentives to millers to develop storages. For price mechanism, it should form a committee representing all stakeholders to monitor price and check exploitation of consumers or stakeholders.

Brig Pervaiz Akbar (retired) of Passco said three of the four functions of his organisation were based on the federal government’s decision and it only stored wheat on its own.

In order to deal with gunny bag price problem, Passco had attempted in the past to directly import these but it was thwarted by jute millers who moved court. But still the department was making efforts to rid the farmers of exploitation.

Idrees Khokhar of the Farmers Associates Pakistan blamed the government for poor financial condition of the farmers. “It does not grant them due price of wheat. Punjab had this year recommended Rs500 per maund and so did the federal food ministry and the Agriculture Price Commission but the government announced only Rs425, making the farmers face a loss of Rs625 per ton,” he regretted.