Prime Minister Imran Khan warned on Thursday the federal government might intervene if the Sindh government did not take effective measures against the mafias involved in profiteering and hoarding of wheat and fertilisers in the province.
Chairing a review meeting on wheat and fertiliser stocks in the country, Imran said that there was no shortage of essential commodities in the country, adding that elements involved in profiteering and hoarding were the enemies of the people.
Strict administrative action should be taken against them [hoarders]. Action should be taken against the fertiliser makers, who are creating artificial shortage along with the mafia due to which the prices are going up,” the prime minister said.
He said that the mafia was engaged in profiteering instead of looking after the interests of the consumers. “If the Sindh government does not take effective measures against the anti-people criminals then the federal government may intervene,” he warned.
According to the data, fertiliser companies in Sindh were giving extra stock to a few dealers. The prime minister directed that the track and trace system introduced by the Federal Board of Revenue (FBR) for the sugar sector should also be used in the fertiliser industry.
“The government is giving a subsidy of Rs120 billion on gas to the fertiliser industry, while they are being given tax concessions worth Rs100 billion,” Imran mentioned. He said fertiliser companies were giving additional fertilisers to specific dealers, which “is benefiting hoarders, leading to artificial shortage”.
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Expressing grave concern over the hoarding, the prime minister directed immediate crackdown on fertiliser hoarders. “Failure of the Sindh government to take action is affecting the prices and supply of fertilisers across the country, including Sindh.”
Meanwhile, National Food Security Minister Fakhar Imam told a press conference that the Sindh government adopted a non-serious and anti-people attitude, while announcing a higher wheat support price than the price set by the federal government.
Speaking alongside Industries Minister Khusro Bakhtyar at the press conference, Imam said that the government was mulling over finding a constitutional way out to set a uniform support price of the commodities to stop the provinces from announcing minimum support price on their own.
"Before announcing the minimum wheat support price of Rs1,950 per 40 kilogrammes, the federal government had asked the Sindh government to send their proposal but it failed to do so and instead the province announced a much higher support price of Rs2,200 per 40 kilogrammes," he said.
“Due to higher support price announced by the Sindh government last year, the price of wheat in the province was much higher than in Punjab,” the minister told reporters. “The difference in support price created distortion, and encouraged hoarding and profiteering,” he added.
“Till date, the government has 5.3 million tons of wheat and after arrival of 1.3 million tons of imported wheat, the stocks would reached to over 6.6 million tons,” he said. “We are releasing 40,000 tons on a daily basis and if this release continues, the stock would be available till first week of June next year.”
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He added the people were suffering because of the wrong policies of the Sindh government. Bakhtyar added the Sindh government had become a safe haven for hoarders and profiteers. He said a huge amount of urea fertiliser was transported to Sindh for hoarding.
The issue of price hike in fertilisers also arose in a meeting of the National Standing Committee on Industry and Production, chaired by its chairman Sajid Hussain Toori. The committee was informed that the price of diammonium phosphate (DAP) fertiliser bag had risen to Rs9,500-10,000.
The industry and production secretary told the committee that the increase in fertiliser prices was due to higher import prices of DAP. He added that because of the high cost of DAP fertilizer, the farmers turned to using urea fertiliser, which resulted in a reduced production of wheat.
The committee recommended that the government should fix the DAP price. It also recommended that the farmers should be given direct subsidy on fertilised instead of the issuance of ‘Kissan Card’ to them.
The secretary informed the committee that a meeting of relevant federal ministers and the four provincial chief secretaries was held with the prime minister on Thursday and important decisions were taken on the issue of DAP fertiliser.
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