KARACHI, Feb 23: The Sindh government waits desperately for a go-ahead signal from Balochistan to deliver 120,000 tons of wheat from its official stocks so that some space is created in the storage houses for fresh procurement from the next crop.

“Not only that the delivery of wheat to Balochistan will create space in the government storage houses but will also bring for Sindh a cash of Rs1.4 billion,” a well-placed and authoritative source in the provincial government informed Dawn on Thursday. He said that Balochistan sought wheat delivery from the Sindh government stocks on full payment of the wheat price and incidentals and a summary is now said to be awaiting approval by the chief minister in Quetta.

Sindh Food department officials are said to have asked Chief Minister Dr Arbab Rahim to approach his counterpart in Quetta directly to persuade him expedite the wheat transaction.

A million ton import of wheat this season ensured round-the-year supply of wheat flour in Karachi but, it has put the food departments of Punjab and Sindh in a position where the officials are finding it difficult to dispose off about two million tons of wheat from the government storages. Officials say that most of the millers imported sub-standard wheat at virtually throw- away price from Russia and Central Asian states and have made big money at the cost of farmers and the consumers in Karachi.

The federal government has added to the difficulties of the food departments of Punjab and Sindh by asking them to procure wheat from the farmers at the officially fixed price of Rs415 for 40 kgs.

With more than 1.5 million tons of carryover surplus wheat stocks, Punjab is exploring export prospects, Sindh has now about 320,000 tons of wheat in the government stocks. The provincial food department has disposed off 46,000 tons of wheat to the World Food Programme for the earthquake affected areas and is eagerly waiting for a quick nod from Quetta to deliver another 0.12 million tons.

In its marketing quest, the Sindh government is also in touch with the defence ministry to sell about 50,000 to 60,000 tons of wheat to the armed forces stationed in various parts of the province.

Officials expect a bumper wheat crop in Sindh exceeding last season’s output of 2.5 million tons to 2.6 million tons plus. With a million ton import of wheat this season, the private traders are reported to be having about 250,000 to 300,000 tons of wheat with them.

After having failed to convince the federal government to stop wheat imports, the two provincial governments in Lahore and Karachi are making preparations for procurement of wheat from the farmers. The Sindh food department is expected to begin procurement from March 15 for which the officials say that funds have been lined up from the banks.

A study reveals that an overwhelming majority of the wheat growers are small holders or tenant farmers. About 96 per cent of the landholdings are of less than 1o hectares and 93 per cent of all farm production is on holdings ranging from 2 to 4 hectares.

Jehangir Tareen, now federal minister of Industries, Production and Special Initiatives, in a study for the State Bank of Pakistan pointed out that bank loans meant for the agriculture sector hardly reach 30 per cent of the farmers. Almost 70 per cent farmers, who are small and do not have even title of their lands, depend on the rural elite of their areas for production loans which are offered at rates as high as 80 per cent and even 100 per cent.

So most of the wheat farmers remain vulnerable and at a disadvantageous position as far as getting the right price for their produce is concerned.

Analysts and economists are of the view that none of the governments has come out with a comprehensive, cohesive and a consistent farm policy that should take care of interests of the small farmers and consumers in the cities and also should have a built-in mechanism to cope with the crisis situations when there is a bumper crop, or whenever there is a shortage because of weather or other factors.

Experience shows that in face of massive government subsidy amounting to well over Rs50 billion in last six years, neither the farmers have benefited nor the consumers. The beneficiaries were and are millers, traders, importers and the food departments’ bureaucracy.