April 23, 2008	Wednesday	Rabi-us-Sani 16, 1429

LAHORE, April 22: The Punjab government has placed undeclared (verbal) inter-district and inter-provincial ban on wheat movement in a bid to achieve its procurement target.

The government has already restricted millers to a stock equivalent to their three-day grinding capacity, thus ending its five-year experiment with free wheat trade.

According to sources in the Food Department, all 35 district co-ordination officers (DCOs) were directed to ensure the ban till further order. The millers, who have been granted permits, are also being forced to buy wheat in the district of their location.

Interestingly, all orders are being conveyed verbally, which are illegal and against the constitution, which allows free movement of wheat in the country.

The Punjab government has also employed innovative methods to stop the millers' procurement. First, it told millers that permit books were being printed. Then, they were asked to furnish the names of seller and transporting vehicle before hand and now they have been told to get the permit counter signed by the local district food controller from where they would procure wheat. But DFCs refuse to oblige the millers because they are under pressure to meet their own procurement targets.

According to millers, the Punjab government has placed another procedural hindrance in issue of permits. According to the rule, the DFC of the district where the mill is located, will issue the permit and the DFC of dispatching point will countersign the permit.

“All the millers, who somehow got the permit, have not been able to buy a single grain because DFCs of dispatching district is not singing permits as he has to meet his own target,” says Khaleeq Arshad of the Pakistan Floor Mills Association.

Under these circumstances, the millers would not able to buy wheat for the rest of the season and they may be forced to go to the Food Department for wheat release as early as June or July, he said.

“Should that happen, which in all probability would if the current situation continues, the government stocks of three million tons will not be sufficient for more than five months. Last five months (December to April) would spell disaster for the country,” he said.

In 2006-07, the department had stocks of 3.9 million tons, and it ended up releasing the entire stocks to keep supply and price under control, says another miller from Lahore. The official stock was released in spite of the fact that the millers also had substantial stocks. This time around, the millers will not have stocks to supplement the official wheat. Thus, the Food Department may need over five million tons to keep flour market under control. But, it is buying only three million tons.

“All the measures being taken to ensure official procurement targets are being issued verbally and cannot be challenged in court,” says Muhammad Ibrahim, a trader from Sheikhupura. The DCO has ordered traders against buying on behalf of millers. These circumstances will only promote corruption. All those traders, who are awaiting permits, will lose market and profits. Those traders violating the verbal orders will make extra money by trading underhand. “Those accusing the military regime of fascism should also explain under which law they have been doing what they are doing,” he said.