Sindh Food and Agriculture Minister Arif Mustafa Jatoi, at a press conference held in his office on Monday, said the deficit of 1.8 million tonnes shall be met from the existing wheat stock of the Punjab food department, the Pakistan Agricultural Supplies and Seed Corporation, and by its import by the Trading Corporation of Pakistan.
He said the TCP would import 1.5 million tonnes of wheat in three installments of 0.5 million tonnes each, for which tenders have been floated. In three installments of 0.25 million tonnes, Sindh would get 0.75 million tonnes of wheat from the TCP by October-end.
The provincial minister said he had persuaded the TCP to avoid putting "home grown" conditions in tenders and restrict itself to the international procedure of tendering to get proper response from the suppliers.
Arif Mustafa Jatoi said seemingly the TCP had agreed to his proposals and wheat is coming to Pakistan, adding: "It will cost $206 to $240 C&F per ton, and would keep flour prices in the local market under control.
He said he would not mind importing wheat from India. "It will be cheaper, reach Karachi ports in time, and would be of chapati quality. However, import permission from the federal government is a prerequisite for this venture", he added.
The minister said that for 33 million people of Sindh, at 124 kg per capita consumption, the requirement was at 4 million tonnes. The department has the ability to meet only 2.2 million tonnes, which is also the estimated production of wheat.
The provincial government is expected to release 1.2 million tonnes wheat to flour mills and Chakkis from August 2004 to March 2005, and the expected shortfall in public sector requirement - 1.02 million tonnes - would be made up through Pakistan Agriculture Supplies and Seed Corporation. The less stock available with the department stands at 0.18 million tonnes.
In all 139, out of 148 functioning flour mills, and 1,499 Chakkis would get wheat that would be available for distribution between August 2004 and March 2005.
The minister said that from this month, the Sindh food department is starting wheat release with 54,000 tonnes, and would increase the same if need arises.
The minister said that Trading Corporation of Pakistan was importing 0.5 million tonnes from Australia and America. In all, there will be three consignments each of 0.5 million tonnes from these two countries and the total import of 1.5 million tonnes would be complete by October 2004.
He said, at present, there was 0.45 million tonnes of wheat in stock. "Therefore, nothing is to worry. We will ensure availability of flour at all cost," Jatoi said.
The province has a shortage of 1.8 million tonnes, which it has to meet through various sources. It has to feed its 33 million people. The per capita consumption of wheat in Pakistan is estimated at 124 kg. The shortage of wheat in Balochistan would be 0.17 million tonnes and in the NWFP 1.6 million tonnes. It is only Punjab, which is in surplus by 5.6 million tonnes. It has also imposed Section 144 on the movement of wheat outside its territory.
Similar to 1.8 million tonnes shortage of wheat in Sindh, Balochistan is expected to produce 0.7 million tonnes, consume 8.7 million tonnes and suffer a shortage of 0.17 million tonnes. NWFP is expected to produce 1.1 million tonnes against it needs 2.7 million tonnes. There will be a shortage of 1.6 million tonnes of wheat.
Arif Jatoi said the restrictions imposed by Punjab would push prices up in the three deficit provinces, adding: "The government should realise this situation."
He said Punjab has a surplus of 5.7 million tonnes of wheat against a production of 16.1 million tonnes and estimated consumption of 10.4 million tonnes. "I do not see any rationale in imposing restriction on the movement of wheat from Punjab to wheat deficient areas", he aded.
The minister said the Punjab government had created problems for smaller provinces by restricting movement of wheat outside its provincial boundaries. "It is against Article 151 of the Constitution, and should be viewed by the federal government seriously," he added.
He said he had contacted the Punjab food minister, and explained him the consequences of clamping Section 144 on the movement of wheat, but nothing tangible had come out so far.
He said: "In principle, Punjab should lift Section 144 immediately."
Arif Jatoi said he had taken all necessary steps to keep flour prices in control and supply of wheat to flour mills regular."All mills and Chakkis functioning in the province would get wheat only to produce flour and not for trading purposes. Those who would indulge in this practice would have to face actions", he added.
He said 2000 to 3000 tonnes of wheat was coming to Sindh daily through Passco.