It was decided that the public sector including Passco would assess the possibility of releasing wheat into the domestic market in order to stabilise prices, discourage hoarding and ensure food security in the country. PHOTO: FILE
Sources told The Express Tribune that the cabinet, in a recent meeting, took notice of the undue increase in prices of flour and bread apparently because of wheat shortage.
It expressed the desire that the National Food Security and Research Division, in collaboration with provincial agriculture departments, should conduct an extensive field research and survey to ascertain the factual stock position both in urban and rural areas.
PTI govt rejects proposal of banning wheat export
Earlier, in a meeting of the Economic Coordination Committee (ECC), the economic managers noted that the data provided for wheat stock did not appear to be realistic. According to the data, there was no shortage of wheat in the country and sufficient stock was available.
However, a continued increase in prices of wheat and wheat flour indicated a different situation. The wheat stock data was based on the information provided by provincial government departments.
The Ministry of National Food Security and Research recalled that the ECC, in its meeting held on July 3, directed the Ministry of Finance to call a meeting of the National Price Monitoring Committee with all stakeholders including provincial governments. It would give recommendations on wheat prices and the measures needed to address the hike in wheat and flour prices in the domestic market.
The Pakistan Agricultural Storage and Services Corporation (Passco) and provincial food departments had reported wheat stocks of 7.813 million tons as on July 5, 2019 as compared to 11.315 million tons at the same time last year.
In a consultative meeting of the wheat review committee held at the Ministry of National Food Security on June 19, 2019, it was decided that the public sector including Passco would assess the possibility of releasing wheat into the domestic market in order to stabilise prices, discourage hoarding and ensure food security in the country.
Now, the Punjab government has expressed its willingness to release some wheat stock in the domestic market.
Wheat production estimated at 25.16 million tons
Wheat procurement by the public sector has almost come to an end this season and estimates suggest that only 4.032 million tons have been purchased from farmers at the set price of Rs1,300 per 40 kg.
The procured quantity was 33% less than the procurement of 5.989 million tons in the corresponding period of last year. The Sindh Food Department has not made any procurement this season.
The Ministry of National Food Security pointed out that the International Grains Council (IGC) in London, in its report published on July 3, 2019, put the international price of soft Red Winter Wheat at $226 per tonne, which was equal to Rs35,731 per tonne.
However, the Pakistan Bureau of Statistics (PBS) reported local prices of wheat and wheat flour in the weekly Sensitive Price Indicator (SPI) of June 27 at a higher level at Rs36,051 per tonne and Rs42,214 per tonne respectively.
The Department of Plant Protection, which works under the Ministry of National Food Security, reported that from July 1, 2018 to June 27, 2019, around 0.327 million tons of wheat flour had been exported via sea and land route.
Published in The Express Tribune, August 3rd, 2019.
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