Wheat procurement from fields welcomed

Private sector buyers to bear packing, transport costs

LAHORE:

Punjab Food Director General Amjad Hafeez has announced that Chief Minister Maryam Nawaz has approved a new wheat procurement mechanism under which selected private buyers will purchase the commodity directly from farmers under the department's supervision.

Under the policy, farmers will not have to buy gunny bags or bear transportation costs. The private sector will procure three million tonnes of wheat from farmers at a fixed price of Rs3,500 per 40 kilogrammes.

The Punjab government has also started work on formulating a policy for the export of wheat products.

Pakistan Flour Mills Association leaders Asim Raza, Mian Riaz and Hafiz Ahmed Qadir praised the introduction of what they termed a farmer-friendly procurement policy, saying it would help stabilise the wheat and flour market.

However, Pakistan Kissan Ittehad President Khalid Mahmood Khokhar said that while the policy includes many positive aspects, farmers still have some concerns.

He questioned how much wheat private buyers would purchase from each district and warned that large landowners and middlemen might sell the produce below Rs3,500, consume district quotas and leave small farmers deprived.

He also expressed concern that if global wheat prices rise, the government might re-enter the market with coercive measures to ensure that the private buyers meet their targets.

Speaking to The Express Tribune on Saturday, DG Amjad Hafeez said the Punjab cabinet has approved the new procurement mechanism, under which the private sector would purchase wheat, while the food department would act as the regulator. On the chief minister's directions, the procurement target has been increased from 2.5 million tonnes to three million tonnes.

He said private buyers would procure wheat from the fields to ease the burden of gunny bags and transportation costs.

He said work was under way to allocate district-wise quotas.

Selected buyers from areas such as Lahore and Rawalpindi will also be allowed to purchase wheat from South Punjab and transport it at their own expense for storage in their cities or nearby areas.

The government will not register farmers for procurement. Instead, buyers will adopt their own mechanisms within assigned areas, while the food department will ensure that wheat is purchased directly from farmers at their fields.

Hafeez added that private buyers will be allowed a reasonable profit margin, but the first right to use the procured wheat will rest with the Punjab government.

"This system has three stakeholders: farmers, private buyers and the Punjab government," he said, adding that farmers will receive payment within 72 hours and unjustified deductions in the name of quality will not be allowed. Wheat worth approximately Rs250 billion will be purchased from farmers.