Wheat movement: Sindh wants ban on supply from Punjab
If growers are unable to sell their stocks in the current season, there will be a glut in the market.
KARACHI:
Lawmakers during the Sindh Assembly on Thursday demanded a complete ban on wheat being supplied from Punjab to Sindh. They said that due to supply from the province on cheaper rates the wheat stocks available in Sindh are not being used and growers are suffering.
During the question answer session many MPAs raised the issue of substandard flour being provided from Punjab on cheaper rates in the market. They said “When we have servere shortage, the Punjab government puts a ban on the movement of wheat. But when we have sufficient stocks then they are selling the substandard flour to us,” one MPA said.
Responding to a question Minister for Food Nadir Magsi said that they had tried to stop the supply but federal government asked them to avoid the practice. “Please tell me what kind I do in this situation,” he said.
He said that if growers are unable to sell their stocks in the current season, there would be a glut in the market, resulting in wastage of existing stocks.
Magsi said that presently 900,000 tons of wheat is stocked in different procurement centres, which is far more than Sindh’s need. “It will create problem for us, if available stocks of the wheat are not sold. How can we get the new wheat for coming season?” he said. The minister also said that the issue of wheat movement was worsened by the fact that Sindh lacks sufficient storage and warehouses have been rented for 200,000 tons of wheat.
He however, said that the government has signed an agreement under public private partnership to develop modern silos in order to store the wheat in the same. “These silos will be established in Karachi and other districts where around half million tons wheat can be procured. I hope that the project will be completed within coming two years,” he said.
When asked about the release of wheat to mill owners he replied that Food Department generally starts releasing the wheat to the flour mills from the month of August onward. The price is forwarded and suggested by the federal government. He said that flour is being sold for over Rs30 per kilogramme in the province while the international price of the same is less than Rs19 per kg.
To a question of ex-mill rate of the flour he said that on April they have notified ex-mill rate Rs25 and retail price was Rs26.50 Meanwhile, another notification was issued in November according to which ex-mill price of the flour was fixed Rs28 and retail at Rs29.50.
Published in The Express Tribune, January 14th, 2011.
Lawmakers during the Sindh Assembly on Thursday demanded a complete ban on wheat being supplied from Punjab to Sindh. They said that due to supply from the province on cheaper rates the wheat stocks available in Sindh are not being used and growers are suffering.
During the question answer session many MPAs raised the issue of substandard flour being provided from Punjab on cheaper rates in the market. They said “When we have servere shortage, the Punjab government puts a ban on the movement of wheat. But when we have sufficient stocks then they are selling the substandard flour to us,” one MPA said.
Responding to a question Minister for Food Nadir Magsi said that they had tried to stop the supply but federal government asked them to avoid the practice. “Please tell me what kind I do in this situation,” he said.
He said that if growers are unable to sell their stocks in the current season, there would be a glut in the market, resulting in wastage of existing stocks.
Magsi said that presently 900,000 tons of wheat is stocked in different procurement centres, which is far more than Sindh’s need. “It will create problem for us, if available stocks of the wheat are not sold. How can we get the new wheat for coming season?” he said. The minister also said that the issue of wheat movement was worsened by the fact that Sindh lacks sufficient storage and warehouses have been rented for 200,000 tons of wheat.
He however, said that the government has signed an agreement under public private partnership to develop modern silos in order to store the wheat in the same. “These silos will be established in Karachi and other districts where around half million tons wheat can be procured. I hope that the project will be completed within coming two years,” he said.
When asked about the release of wheat to mill owners he replied that Food Department generally starts releasing the wheat to the flour mills from the month of August onward. The price is forwarded and suggested by the federal government. He said that flour is being sold for over Rs30 per kilogramme in the province while the international price of the same is less than Rs19 per kg.
To a question of ex-mill rate of the flour he said that on April they have notified ex-mill rate Rs25 and retail price was Rs26.50 Meanwhile, another notification was issued in November according to which ex-mill price of the flour was fixed Rs28 and retail at Rs29.50.
Published in The Express Tribune, January 14th, 2011.