Failure to register warehouses in Punjab hinders regulation efforts
Since the enactment of the Punjab Registration of Godown Act in 2014, the Punjab government has failed to register thousands of godowns, cold storages, warehouses, and depots across the province, including in Faisalabad.
Consequently, the government has been unable to collect billions of rupees in fees from these licence holders, spanning 135 market committees.
Sources revealed that although the Punjab government approved the act in 2014, registration powers were delegated to assistant commissioners and the director of Agriculture Marketing Punjab. However, these officials have not fulfilled their obligations to register warehouses within their jurisdictions, resulting in a lack of regulatory oversight.
The Punjab Registration of Godown Act mandated that all existing and new warehouse holders acquire registration certification within 30 and 60 days, respectively, after the enactment of the act. However, due to the failure to implement the act effectively, the agriculture sector has become unregulated, leading to hoarding and artificial shortages of essential items across Punjab.
DO Industry Muhammad Irfan highlighted that traders and stockists have been submitting their stock positions under the Anti-Hoarding Act 2020, as per directives from the Chief Minister of Punjab, to control prices.
However, the exact number of warehouse in Faisalabad remains unknown. Additionally, the Ayub Agriculture Research Institute director emphasised the challenges faced by district administrations in assessing real stocks without the registration of these entities.
The Building Department's Executive Engineer revealed that a district-wise survey conducted in 2021 by the provincial building department identified 500 warehouses, including cloth warehouses, grain storage facilities, agricultural seed warehouses, and rice, sugar storages. However, without government action, the implementation of growth strategies based on this data remains stalled.
Economics and Agricultural Marketing Director Nayyir Jalal acknowledged the department's obligation to register godowns but highlighted the absence of necessary bylaws and rules for effective implementation.
Until these regulations are put in place, the registration of godowns across Punjab remains pending, hindering efforts to regulate the storage and distribution of essential goods.
A district administration official, speaking on the condition of anonymity to The Express Tribune, revealed that the Punjab government had promulgated the act somewhat reluctantly, under pressure from foreign donors who emphasised the necessity of curbing powerful hoarding entities and enhancing public participation in price regulation and governance. However, influential figures in the warehouse sector exerted their influence, thwarting government initiatives and leading the provincial legislature to refrain from approving the rules associated with the act.
“The failure to register warehouses not only undermines regulatory efforts but also poses challenges in controlling prices and ensuring the smooth supply of essential items to consumers,” he remarked.
Published in The Express Tribune, March 20th, 2024.