The decision was recently taken by the Economic Coordination Committee (ECC) of the Cabinet which was ratified by the Cabinet early this week. The Ministry of National Food Security and Research briefed the meeting that since the last decade Pakistan is self-sufficient in wheat production. During the year wheat production remained over and above the national requirement of the country.
The Federal Committee on Agriculture (FCA) meeting held on October 11, 2018 fixed the sowing area target of 21.827 million acres with production of 25.507 million tons.
Initially, it was expected that despite the shortfall of one percent of sowing target the production target of 25.507 million tons would be achieved safely.
However, due to heavy rains and thunderstorms' in April and May, the expected wheat production has declined to 24.268 million tons showing 5 per cent loss to the production target of 25.507 million tons.
The available stocks of wheat as reported by the provinces on May 20, 2019 were at the level of 6.742 million tons as compared to 7.257 million tons in the corresponding period of last year. The ECC of the Cabinet has approved procurement of 6.250 million tons of wheat by the public sector with the financial limit of Rs 200.041 billion.
The sources said, Provincial Food Departments and Passco have started the wheat procurement process vigorously throughout the country. So far, Punjab Food Department has procured 2.476 million tons whereas Passco has reported procurement progress at the level of 0.508 million tons.
However, Sindh Food Department has still not started its procurement process because of delay in taking the decision by the Provincial Cabinet despite the fact that the province has a committee to procure wheat as per allocation allowed by the ECC of the Cabinet.
According to the Ministry of National Food Security and Research, Pakistan Flour Mills Association (PFMA) by using the print media, has contested the unnecessary barriers imposed by the Punjab Food Department during wheat procurement process. The association has demanded lifting of ban on sale/purchase of wheat at the national level and to ensure its free movement within the country. PFMA has also demanded a ban on export of wheat.
The current rate of wheat in the international market is $ 205/ MT. With $ 150 ($ 216/MT) in the domestic market the gap between international and local price is narrowing.
In view of stocks and fresh procurement, Ministry of National Food Security & Research while examining the current situation of wheat at national level submitted the following recommendations ;(i) the available wheat stock, as reported by provinces and Passco is well above Pakistan's national requirement of around 25.84 million tons; (ii) wheat procurement is as per target by the Provincial Food Department (Punjab) and Passco and;(iii) there is no need to put an immediate ban on the export of wheat but rather the situation should be closely monitored.
