Passco to start wheat purchase from May

Preference will be given to growers who have borrowed from ZTBL.

LAHORE: State-run Pakistan Agricultural Storage and Services Corporation (Passco) has planned to start purchasing wheat from growers from the beginning of May this season and will give preference to those farmers who have borrowed money from the agricultural bank for sowing.

According to Passco, this is for the first time that it has initiated a project on experimental basis in Mian Channu (Khanewal zone), where it will buy wheat first from those growers who have got loans from the Zarai Taraqiati Bank Limited (ZTBL).

Payments for wheat will be deposited directly in the ZTBL branch concerned, which will deduct the borrowed amount and release the remaining to the farmers. The experiment, if successful, will be applied in other zones in coming years.

Before launching the procurement drive, Passco is expected to start distributing jute and propylene bags for packing from the last week of April.

In the first 10 days of the programme, Passco will fully accommodate small farmers and not issue gunny bags to anyone holding more than 12 acres of land. “In this regard, we will rely on the list provided by the provincial revenue department to ensure that no small grower is denied the sacks,” said a high official of Passco.

In addition to the government support price of Rs1,050 per 40 kg, the growers will be given Rs7 per 100 kg as delivery charges.

According to the official, initially, arrangements have been made to purchase 1.5 million tons of wheat but the Economic Coordination Committee (ECC) has given a high procurement target of 2 million tons for the current year.

“All arrangements including those for financing have been made and now the corporation is in negotiations to arrange finances for the enhanced target, which are expected to be completed before the start of distribution of bags for packing,” the official said.

Published in The Express Tribune, April 18^th, 2012.