Punjab, K-P to pay Rs500 subsidy on imported wheat

TCP places orders for purchase of 330,000 tonnes at $278 per tonne

ISLAMABAD:

The wheat imported by the government would cost at least Rs1,977 per 40 kilogrammes, which means the provinces will have to pay a subsidy of more than Rs500 per 40 kilogrammes on the release of imported wheat at the government rate, according to sources in the Ministry of Food Security.

 According to the sources, the government is importing wheat through the Trading Corporation of Pakistan (TCP) and orders have been placed for 330,000 tonnes. The tender issued by the TCP were opened on October 5.

 The sources said that the minimum bid was received at $278 per tonne. Hence, orders were issued to purchase wheat from abroad at the same rate, which meant that the cost of imported wheat at the port would be Rs1,977 per 40 kilogrammes, they added.

 The TCP will import 700,000 tonnes of wheat for Punjab and 300,000 tonnes for Khyber Pakhtunkhwa (K-P). The sources said Punjab, K-P and the Pakistan Agricultural Storage and Services Corporation (Passco) will buy the imported wheat from the TCP and they will also bear the transportation costs.

 The provinces will release wheat at the official rate, which is Rs1,475 in Punjab and K-P. The difference of more than Rs500, according to sources, would be borne by the provinces in the form of subsidy. The Sindh government has shown no interest in the imported wheat.

 According to the sources, Punjab, K-P and the Passco have submitted bonds to buy wheat from the TCP. Punjab had demanded 700,000 tonnes of wheat, K-P 300,000 tonnes and Pasco 500,000 tonnes, the sources added.