ISLAMABAD: The Senate Standing Committee on National Food Security and Research was informed on Thursday that there is no shortage of wheat in Punjab, and the balance stock of 2.1 million tonnes would be sufficient till the next wheat harvest season starting on April 15.

In a report submitted to the committee, the Punjab government stated that it has asked the federal government for 200,000 tonnes of wheat from Pakistan Agricultural Storage and Supplies Corporation (Passco) reserves to ensure continuous supplies of wheat products to Khyber Pakhtunkhwa (KP).

Sufficient allocation of wheat has been made by Passco to Sindh and KP and as a result the supply situation of wheat flour in the markets of these two provinces has improved. Punjab is supplying 4,000 tonnes of wheat products on a daily basis to KP, the report says.

It says despite reduction in production and weather effects in late March and early April last year, Punjab procured 3.3m tonnes of wheat and together with carry forward of 1.5m tonnes, it had the initial stock of 4.8m tonnes after procurement.

Flour supply situation has improved in Sindh, Khyber Pakhtunkhwa

This procurement was done despite huge subsidy and debt burden on food account. The stocks were deemed sufficient for Punjab’s own needs based on historical average release trends.

However, if seen in the overall national context, the gap created by no procurement by Sindh and Balochistan and nominal procurement by KP and reduced stocks by Passco for the year, the existing national stocks including that of Punjab came under stress. Had all the players achieved their federally set targets for procurement, the situation would not have occurred, the report says.

The Punjab government suggested that the legal framework at federal and provincial levels should be revisited and strengthened to ensure wheat and wheat flour security in the country. Accuracy in wheat production estimates should also be improved.

On short term, the Punjab government recommended that there is dire need to revisit the regulatory framework of wheat trade. Standard operating procedures (SOPs) should be developed for the next wheat crop to regulate stocks of strategic primary wheat traders like flour millers and seed companies.

Wheat support price should be reviewed in the light of prevailing local and international market prices to ensure appropriate build-up of public sector stocks in the country. Monitoring of wheat movement out of Punjab and at federal level, ban on export of wheat and wheat products should be continued, report says.

Secretary of the Ministry of National Food Security and Research Hashim Popalzai informed the committee that the ministry is proposing to the next meeting of the Economic Coordination Committee to increase the wheat support price to Rs1,400 per 40kg. He said it has been proposed that wheat procurement will be advanced by 15 days.

Chairman of the committee Muzaffar Hussain Shah stressed the need for formulating SOPs for major crops. He asserted that minimum support price for these crops must be determined as well.

The committee was of the view that provincial governments must procure wheat at the right time and avoid delays at all costs. Abadgars and growers must be facilitated and subsidy must be given to them. This is important due to low yield and high production costs. A minimum support price must be determined.

Chairman of the Flour Mills Association Asim Raza informed the committee that there was no shortage of wheat in the country. However, certain factors contributed towards it. He asserted that a huge quantity of marketable wheat was consumed by feed mills.

Published in Dawn, February 7th, 2020