HYDERABAD: Wheat procurement exercise remains no different this year again insofar as purchase of grain from growers at official price in 2019-20 is concerned. Farmers preferred selling their crop to open market buyers who, luckily though, offered them better price.

On the other hand food department, in this mid-April physical verification of stocks, faces shortage of around 168,000 tonnes of wheat crop that is reflected in its balance books but missing from godowns of 14 districts’ carryover stocks.

It means a direct loss of Rs5.46bn to the public exchequer even if wheat had been bought at the old rate of Rs1,300/40kg. In addition to it, if cost of another shortage of 62,000 tonnes of wheat is calculated, it would take the total loss to Rs7.47bn. This 62,000 tonnes of wheat is kept in flour mills by food department but mill owners adjusted it under plea bargain with the National Accountability Bureau (NAB) towards shortage of grain reported on their premises by NAB.

This misappropriation was detected during physical verification of wheat stocks in mid April, revealing a huge shortage of wheat. The department now has zero carryover stocks. “Around 168,000 metric tonnes of wheat is missing in godowns although it is reflected in record of 14 districts while 62,000 tonnes is the quantum being shown under plea bargain adjustment [with NAB]. Hardly, 26,000 tonnes of wheat is there as per verification,” says a source.

The verification process ensued after food department finished its releases to flour mills and chakki owners and food officials of various districts did not provide a clear picture to the department. “It has been recommended to Sindh government to order further probe through NAB or through some other agency into this misappropriation,” says another source.

Sindh government had not procured wheat in 2018-19 season on the ground that it had close to 700,000 to 800,000 tonnes of grain carryover stocks available with it. The last procurement of crop was done in 2017-18 season, therefore, recent verification proved that misappropriation was clearly there thus the panic in food ministry to buy wheat for food security.

As far the current season is concerned, the crop’s major chunk is harvested in Sindh. Food department is, still, hopeful it would achieve target of 1.4m tonnes. This year farmers didn’t chase food department to get gunny bags and traders offered them better price.

“There is a lot of speculation that flour price will increase. This apparently jacked up open market price of grain for wheat growers. Food department didn’t follow a transparent policy for procurement, otherwise it would have achieved its target easily. Since growers are getting better price sans cumbersome procedure of food department, they remain better off by selling their grain to open market buyers”, says Mahmood Nawaz Shah, Sindh Abadgar Board vice president.

The department has so far purchased 700,000 tonnes of wheat, according to Sindh Food Secretary Laeeq A. Khan. “Wheat is not buried under. It is hoarded by certain elements and we will be laying hands on them to recover it. We are optimistic we will meet the target,” Khan asserts.

Grain procurement has always been tricky in Sindh. The entire operation involves billions of rupees from public exchequer but procurement ‘season’ helps fill coffers of many. Huge expenditures from the public money are made for few reasons — to benefit farmers by paying them support price in lieu of grain, stabilise open market price and, above all, to ensure food security. But subsidy hardly reaches the targeted medium- and small-size farmers. Subsidy which comes from public purse is usually stomached by unscrupulous food officials, traders, influential growers and those who always matter in governance.

Small- and medium-size farmers end up as major losers in the race to get support price by supplying their grain to food department thanks to connivance of food department with traders or influential people. The latter get away with gunny bags to supply grain and get support price.

Early last month, food department waived condition of form-VII (land ownership document) for farmers after district food controllers (DFCs) of nine districts wrote to the department on April 7 urging it to opt for a liberal policy of purchasing wheat from ‘anybody’ besides growers if procurement target was to be met. According to them, since market price of wheat is higher than support price, the target will be impossible to meet otherwise.

The waiver was allowed after April 7 representation by DFCs, according to a document shared by one food official. Despite liberal policy, food department could not be able to meet its target although according to official claim procurement started on March 26 which otherwise begins in April.

“I found it easy to sell my wheat to traders who lifted it from my land in Matiari for Rs1,300/40kg. I simply didn’t get gunny bags for supply of my grain to food godown. So it was a better deal for me to sell it easily to traders,” says Nadeem Shah in Matiari.

Haji Ameer Bux Pahore, a veteran wheat grower from upper Sindh’s Shikarpur district, points out that on May 3, he sold his wheat for Rs1,430/40kg and on an average sold it for Rs1,350/40kg. “Usually we chase food officials to get gunny bags but this year it is vice versa. Food officials are approaching every single farmer to purchase wheat from them but stocks are not available,” he says.

Food department officials are employing strong arm tactics to get grain by hook or crook. Pahore’s fellow grower from Shikarpur, Agha Aurangzeb, complains that his 150 maunds of wheat was taken away by food officials forcibly. “I was transporting wheat to trader-cum-informal lender to settle my loan towards seed and fertilizer by adjusting it through grain,” he said.

A ‘peddy’ is an informal lender in Sindh who offers inputs to farmers and then buy their crop to settle their accounts/loans advanced to growers in shape of inputs. These are in hundreds that run informal economy in rural Sindh.

Sindh food department is, however, poised to achieve target. “A person not having ‘food grain licence’ cannot store wheat and if he does so, it will be recovered through law. We have reminded flour mills that they cannot keep a wheat stock of three months,” says the food secretary.

Now in a recent move, Sindh government on May 2 authorised them to keep their stock for 45 days. Deputy commissioners and DFCs are authorised to take action against transportation of wheat outside province, hoarding, and temporary storage/movement of wheat.

Sindh expects to have 3.8m tonnes of wheat production in 2019-20. Of the total wheat crop, the Sindh government usually procures 25pc, growers keep a certain quantum for themselves and the rest is bought by traders and roller flour mills.

Published in Dawn, May 4th, 2020