Construction of wheat silos approved
Post-harvest losses of wheat were around 30 per cent and could touch 50 per cent in an unfavourable climate. The food department has been storing wheat without any proper arrangement which has led to losses.
The United States Agency for International Development (USAID) has provided $1.5 million to the Punjab government in order to help enhance and modernise wheat storage facilities through construction of silos with the help of public-private partnership.
This project will address the government’s need to build modern handling and storage facilities, which would safeguard the country’s strategic reserves of around four million tons of wheat.
Documents state that the International Finance Corporation is responsible for the execution of the project and is scheduled to complete it within 18 months.
The silos are to be used by both the food department and the private sector. According to the agreement, the food department will utilise 50 per cent of the storage capacity, while the rest will be used by private partners for commercial business.
Speaking to The Express Tribune, a Punjab Food Department official said, “it will reduce net cost of grain storage, through reduced losses.” He hoped for greater collaboration with the private sector to facilitate financing, construction and operation of the silos.
He stressed that the enhancement in storage capacity will allow the food department to meet international standards.
Punjab Minister for Food and Industries Chaudhry Abdul Ghafoor explained that the project is a result of the provincial government’s efforts to control wheat losses and enhance storage capacity. He added that the silos would ensure food security and allow an increase in wheat exports in future.
Published in The Express Tribune, February 12th, 2011.
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