Cabinet initiates inquiry against food ministry

Seeks reasons for not procuring wheat when prices were at the lowest

ISLAMABAD:

The cabinet has started an inquiry into delay in procurement of wheat by the food security ministry at a time when prices were at the lowest.

The cabinet sought a detailed record of decisions, entire sequence of events and reasons for not purchasing wheat when prices stood low.

It said the presentation should also cover, in chronological order, details of all decisions taken in that regard by the cabinet and the Economic Coordination Committee (ECC) since January 2020 and lessons learnt from the experience.

In a recent meeting, cabinet members emphasised that the matter of procurement price of imported wheat should not have been brought to the ECC and the cabinet as under the Public Procurement Regulatory Authority (PPRA) Rules the matter fell within the purview of the National Food Security and Research Division.

It was highlighted that the division was reluctant to take decision on the issue, and due to the urgency and sensitivity of the matter, the decision could not have been delayed.

Thus, the cabinet members sought an explanation about the sequence of events surrounding wheat procurement. The cabinet also directed the Commerce Division to present a detailed timeline of wheat import till January 30, 2021.

With the arrival of bulk imported wheat and sugar, necessary coordination amongst agencies for their seamless transportation to upcountry areas was stressed.

In a briefing to the cabinet on the plan of stabilising prices of wheat and flour, it was informed that with the import of wheat by public and private sectors, national stocks were being significantly bolstered. To restore confidence of the market and stabilise prices through supply-side intervention, provinces agreed to increase the daily release of wheat.

While explaining the price differential between chakki flour and expensive fine flour, it was suggested that the Pakistan Bureau of Statistics should create a separate category for fine flour. The prime minister directed the minister for national food security to monitor the release of wheat by provinces on a daily basis.

A member pointed out that there were two separate prices prevalent in the market.

During the meeting, the reserves and import of sugar were also discussed. It was informed that the process of physical verification had been initiated in line with the sugar inquiry report.

To meet the shortfall, a total of 250,000 tons of sugar was being imported through public and private sectors. The new sugarcane crushing season would start by November 10.

The cabinet was informed that the relevant law had been amended to impose a harsh punishment on millers for delaying the start of crushing.

Cabinet members voiced hope that prices of sugar would drop by Rs10 to Rs15 per kg in the coming days with the improvement in supply.

Published in The Express Tribune, October 30^th, 2020.

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