Release of 32,000 tonnes of old wheat to Sindh flour mills cancelled

Published February 11, 2021
The Sindh food department has cancelled release of 32,000 tonnes of old wheat to flour mills in different regions of the province. — AFP/File
The Sindh food department has cancelled release of 32,000 tonnes of old wheat to flour mills in different regions of the province. — AFP/File

HYDERABAD: The Sindh food department has cancelled release of 32,000 tonnes of old wheat to flour mills in different regions of the province.

According to a directive issued on Feb 8, the food department has cancelled entire old stocks of wheat as mentioned in Feb 2 letter’s second paragraph.

The old stocks were to be released for Karachi, Larkana, Shikarpur, Qambar-Shahdadkot, Jacobabad and Kashmore regions where flour mills were located. Of the 32,000 tonnes, 16,000 tonnes were to be released for Karachi region alone.

The provincial food secretary in his comments said: “We could have disposed of old stocks through interested buyers other than mills as they are aplenty in the market. But the wheat release policy 2020-21 does not permit this. Our good intentions are unnecessarily scandalised. We are therefore withdrawing allocation of old stock.”

He said the “flour mills mafia” and “unscrupulous elements in the food department” are hand in glove in misappropriating government wheat. The mafia wants to get the wheat (old stock) through auction on peanuts whereas latter supports this because wheat to be auctioned is not in bags but lying in piles.

16,000 tonnes of the commodity was to be released for Karachi region alone

He said it was easy to hide misappropriated wheat in that way as stock in piles was not weighable and all the misappropriation, which was in thousands of tonnes, went to auction drains which was in interest of thieves sitting both in the mills’ association and the food department.

The food department would now go for auction of the same wheat at Rs3,700 per 100kg, which was issue price for new crop. The old stocks which the food department was releasing earlier pertained to 2012, 2013, 2014, 2015, 2016 and 2017.

The department didn’t explain why this stock was not released when flour prices witnessed a surge as it ran out of wheat on a number of occasions in last couple of years.

The department had to seek federal government’s assistance for wheat stocks to meet the requirement of consumers.

The Sindh food department could not meet its procurement target of 1.4 million tonnes of wheat in the 2019-20 season as it ended up getting 1.236m tonnes despite the fact that the mandatory condition of submission of form-VII by a farmer for selling the commodity to the department had been waived.

The department had not procured wheat in the 2018-19 season, even though it had persuaded the Sindh government to at least purchase a few lakh tonnes of wheat but cabinet didn’t agree with department’s suggestion.

Published in Dawn, February 11th, 2021

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Wheat price crash
Updated 20 May, 2024

Wheat price crash

What the government has done to Punjab’s smallholder wheat growers by staying out of the market amid crashing prices is deplorable.
Afghan corruption
20 May, 2024

Afghan corruption

AMONGST the reasons that the Afghan Taliban marched into Kabul in August 2021 without any resistance to speak of ...
Volleyball triumph
20 May, 2024

Volleyball triumph

IN the last week, while Pakistan’s cricket team savoured a come-from-behind T20 series victory against Ireland,...
Border clashes
19 May, 2024

Border clashes

THE Pakistan-Afghanistan frontier has witnessed another series of flare-ups, this time in the Kurram tribal district...
Penalising the dutiful
19 May, 2024

Penalising the dutiful

DOES the government feel no remorse in burdening honest citizens with the cost of its own ineptitude? With the ...
Students in Kyrgyzstan
Updated 19 May, 2024

Students in Kyrgyzstan

The govt ought to take a direct approach comprising convincing communication with the students and Kyrgyz authorities.