Green light: Provinces allowed to export surplus wheat

Decision comes after bumper crops cause excess supply.

ISLAMABAD: In a bid to rid excess wheat, the federal government awarded provincial governments the power to directly export their stock. This was announced by National Food Security and Research Secretary Sirat Asghar.

The secretary said that in the past only private parties were allowed to export wheat and now the provinces can export their surplus stock following the permission of the Economic Coordination Committee.

The purpose of this move is for disposing the surplus from the provinces so that they would have a space for procuring fresh stock.

He said that the country has had two consecutive bumper wheat crops and this has been the case for several countries, adding that this was the reason behind the lack of demand of Pakistan’s wheat in the international market.

“Provinces are doing their best to approach different countries to sell their surplus stock”, stated the secretary.

He said that some neighbouring countries including Afghanistan and Tajikistan have reportedly expressed interest to import wheat from Pakistan.

Additionally, Asghar said that Punjab will start procurement of wheat from farmers from May 1 and Sindh has already started procurement from April 15.

He said the provincial food department of Punjab will start distribution of gunny bags from April 23.

This year, he said, Punjab will procure 4 million tons of wheat from farmers and Sindh will procure around 1.2 million tons.

He added that the federal government has also recommended to the ECC to increase wheat procurement quota of Pakistan Agriculture Storage and Service Corporation from 0.8 million tons to 1.5 million tons.

According to an official in the Punjab food department, an amount of Rs130 billion has been reserved for procuring 4 million tons of wheat.

Officially, the gunny bag distribution process would start from Thursday, he added.

The Punjab food department had earlier estimated that it would achieve a target of almost 20 million tons, but it is feared that the target would not be met due to the recent rains and hailstorms, particular in Lahore, Gujranwala, Sheikhupura, Sargodha and Sahiwal divisions, which hit standing crops in the most fertile part of the province.

Published in The Express Tribune, April 22^nd,  2015.

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