Sources told Business Recorder on Monday the decision to abolish 10 percent import duty on wheat was taken in a meeting of the price committee convened under the chairmanship of adviser to prime minister on finance Dr Salman Shah on August 3.
WHEAT: The government has finalised a strategy to ensure availability of wheat at a cheaper rate. The adviser has directed the planning division to draft a strategy paper on strategic reserves of food items, including estimated cost of subsidy involving reserves. The strategy paper would highlight ways and means to provide wheat and other commodities at subsidised rates to general masses.
The ministry of food, agriculture and livestock (Minfal) will present weekly forecast of food items during committee meetings.
The adviser also directed Minfal and tax authorities "to draft a proposal for termination of existing 10 percent import duty on wheat".
PULSES: Sources said the Trading Corporation of Pakistan (TCP) would pursue the import of grams from India and the private sector would also be encouraged to procure it from Australia and Canada. The pulses committee was advised to invariably route their recommendations through the price committee.
According to sources, the industries ministry will pursue provincial governments to implement the price control mechanism. Minfal will bring up a list of importers of gram and meetings of the price committee would be held on weekly basis.
SUGAR: In addition to existing quantity of 32,000 metric tons (MT) monthly, the TCP will provide 15000 MT sugar to the Utility Stores Corporation (USC) from September 15 to October 31, 2006. This sugar will be sold by the USC through its own outlets @ Rs27.50 per kg. The USC will meet the demand of Balochistan by this sugar quantity during the month of Ramazan.
The USC will sell sugar Rs 2 less than the market price in the following manner: A quantity of 50,000 MT would be sold from August 15 to August 31, 2006. The quantity of 100,000-150,000 MT per month during the period September 1 to November 30, 2006. This quantity of sugar stocks would be sold to retailers from USC's 25 new centres and the franchise given by the USC for the specific purpose.
The sale prices of sugar would be determined by the USC (Rs2 less) keeping in view market prices of sugar present in different geographical zones. The stock position of the TCP on December 1, 2006 should be 400,000 tons, sources said.
For the sugar sale mechanism, the industries ministry would draft a proposal with the support of the TCP, which would be approved by the Prime Minister. Moreover, sugar stocks of 150,000 MT already sold by the TCP/USC at Rs34 per kg without the Prime Minister's approval and the economic co-ordination committee (ECC) of the cabinet may be regularised through the same proposal.