Government would not leave the farmers at the mercy of "Beoparis" (Middlemen)
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Abdul Sattar Qamar
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MULTAN, March 22nd: Federal Minister for Food and Agriculture Nazar Muhammad Gondal has said that Government would not leave the farmers at the mercy of "Beoparis" (Middlemen) and it would purchase maximum wheat through provincial food departments and PASSCO. Talking to newsmen here today Nazar Muhammad Gondal said that the Economic Co-ordination Committee (ECC) of the Cabinet had directed the State Bank of Pakistan and us (the Ministry of Food and Agriculture (Minfa) to draft a joint strategy to dispose of surplus wheat. Indications are that the government intends to allow export of 0.2 million tons of wheat flour as the SBP is insisting that the government should pay back loans taken last year to procure wheat.However State Bank of Pakistan (SBP) has directed the commercial banks to give credit for procurement of 7.5 million tons of wheat. According to SBP Governor, this would amount to Rs 107 billion short of financial year 2010 requirements. There is a collateral shortfall of Rs 98 billion due to carrying cost of Rs 24 billion paid for sale of wheat and for subsidy/other receivables due from provincial governments against the release of their stocks amounting to Rs 74 billion He claimed that by April 15, 2010, wheat stocks in reserve would be around 3.26 million tons, which would supplement the future crop which, due to the prevailing drought and other factors, might require reinforcement to meet the demand during next year.He said that Punjab Government had already asked the federal Government to offload wheat stocks beyond strategic reserves because the present storage capacity is inadequate to cater for additional wheat.The Minister said that Prime Minister Yousaf Raza Gilani directed that due to prospects of good wheat crop, Minfa and SBP should consider offloading existing stock of wheat and submit its recommendations in the next ECC meeting. However, the concerned stakeholders have been instructed to ensure that the level of reserves is maintained.He said that the country would manage to produce about 23 million tons wheat. Last year, Pakistan had achieved record production of 24.03 million tons from 9.05 million hectares (22.36 million acres), an increase of 14 percent over the previous years (2007-08) achievement of 21 million tons.Public sector procurement touched a record level of 10.06 million tons, including carryforward of 0.828 million tons. Public sector releases in the provinces commenced in August 2009 and releases till date are 4.15 million tons. The public sector up to 01-02-2010 had a stock of 5.90 million tons of wheat as compared to previous years 1.68 million tons.The government has directed the provincial government to lift allocated wheat from Passco godowns to avoid penalties.
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