Cold war starts between Punjab and other provinces over support price for wheat
The Punjab government has said that it will be unable to procure its target of wheat.
The Punjab government has requested that the SC give direction for a uniform support price for the procurement of wheat throughout the country. PHOTO: INP/FILE
ISLAMBAD:
A Cold war has started between Punjab and other small provinces over the supply of wheat and the fixation for its support price.
Opposing the fixation of the support price for wheat made by the Sindh and Khyber-Pakhtunkhwa (K-P) governments, the Punjab government has expressed its apprehension before the Supreme Court (SC).
The Punjab government has said that it will not be able to procure its target of wheat due to the decision made by K-P and Sindh.
The Punjab government also complained that the provincial governments of K-P and Sindh has put the food security of the whole country at risk by creating a market distortion, adding that the governments are violating the established norm of the uniform support price across the country.
On the other hand, the K-P government has already approached the SC against the Punjab government's blocking of the supply of wheat to the north-western province.
“The federal government fixed the support price for wheat crop 2013-14, at Rs1200/40 Kg. [The] support price [was] announced in the month of October in order to [give] growers an incentive to [produce] more wheat," the application stated.
It further said that "keeping in view the difficulties of [the] poor man and the affordability aspect, the government of Punjab maintained the support price of wheat procurement at the rate of [Rs]1200/ per 40 Kg, whereas K-P and Sindh governments unilaterally increased the rates of procurement of wheat from Rs1200/40Kg to Rs1250/40 Kg at the time of harvesting.”
Similarly, Additional Advocate General Punjab Razaq A Mirza on behalf of additional secretary food department on Monday submitted an application in the SC regarding the increase in the price of flour.
The Punjab government has requested that the SC give direction for a uniform support price for the procurement of wheat throughout the country, so as to ensure food security targets in the public interest. The copy of the application is available with Express Tribune.
Moreover, the Punjab government added that the food department and the Pakistan Agriculture Storage and Services Corporation (PASSCO) are unable to secure their targets of wheat procurement for food security fixed by the federal government.
The federal government had fixed a target of 1.6 million tons for the Punjab Food Department and 1.6 million tons for PASSCO.
“[An] ncrease in [the] support price at the time of harvesting only benefits traders and middlemen, and has [an] adverse impact on poor consumers,” the Punjab government contended.
It also said that the public interest demands a uniform wheat support price for wheat across the country, and free movement of wheat and wheat products which should be done by the federal government.
The Punjab government has also rejected the Pakistan Tehreek-e-Insaf-led (PTI) K-P government’s concerns regarding the ban in the movement of wheat to the north-western province.
The application also said that the wheat procurement policy of Punjab for the scheme 2014-2015 does not contain any restriction on free movement.
“The food security requirement of Punjab, keeping in view urban population and other factors, is 2.8 million tons. [However], government of Punjab purchases and maintains a wheat reserve of more than 4 million metric tons to cater for the need of sister provinces.”
It further added that this year, Punjab released 40, 23000 metric ton and assisted sister provinces - mainly K-P - by providing 12, 23000 metric ton wheat or wheat flour paying subsidy and incidental charges from its own exchequer.
"The real issue is that wheat is the staple food and traditionally, the federal government use[d] to announce a uniform support price in consultation with the provinces till this year,” the Punjab government said.
The Punjab government also claimed that it had issued directions to all departments concerned to ensure free movement of wheat and wheat products inside and outside Punjab.
A Cold war has started between Punjab and other small provinces over the supply of wheat and the fixation for its support price.
Opposing the fixation of the support price for wheat made by the Sindh and Khyber-Pakhtunkhwa (K-P) governments, the Punjab government has expressed its apprehension before the Supreme Court (SC).
The Punjab government has said that it will not be able to procure its target of wheat due to the decision made by K-P and Sindh.
The Punjab government also complained that the provincial governments of K-P and Sindh has put the food security of the whole country at risk by creating a market distortion, adding that the governments are violating the established norm of the uniform support price across the country.
On the other hand, the K-P government has already approached the SC against the Punjab government's blocking of the supply of wheat to the north-western province.
“The federal government fixed the support price for wheat crop 2013-14, at Rs1200/40 Kg. [The] support price [was] announced in the month of October in order to [give] growers an incentive to [produce] more wheat," the application stated.
It further said that "keeping in view the difficulties of [the] poor man and the affordability aspect, the government of Punjab maintained the support price of wheat procurement at the rate of [Rs]1200/ per 40 Kg, whereas K-P and Sindh governments unilaterally increased the rates of procurement of wheat from Rs1200/40Kg to Rs1250/40 Kg at the time of harvesting.”
Similarly, Additional Advocate General Punjab Razaq A Mirza on behalf of additional secretary food department on Monday submitted an application in the SC regarding the increase in the price of flour.
The Punjab government has requested that the SC give direction for a uniform support price for the procurement of wheat throughout the country, so as to ensure food security targets in the public interest. The copy of the application is available with Express Tribune.
Moreover, the Punjab government added that the food department and the Pakistan Agriculture Storage and Services Corporation (PASSCO) are unable to secure their targets of wheat procurement for food security fixed by the federal government.
The federal government had fixed a target of 1.6 million tons for the Punjab Food Department and 1.6 million tons for PASSCO.
“[An] ncrease in [the] support price at the time of harvesting only benefits traders and middlemen, and has [an] adverse impact on poor consumers,” the Punjab government contended.
It also said that the public interest demands a uniform wheat support price for wheat across the country, and free movement of wheat and wheat products which should be done by the federal government.
The Punjab government has also rejected the Pakistan Tehreek-e-Insaf-led (PTI) K-P government’s concerns regarding the ban in the movement of wheat to the north-western province.
The application also said that the wheat procurement policy of Punjab for the scheme 2014-2015 does not contain any restriction on free movement.
“The food security requirement of Punjab, keeping in view urban population and other factors, is 2.8 million tons. [However], government of Punjab purchases and maintains a wheat reserve of more than 4 million metric tons to cater for the need of sister provinces.”
It further added that this year, Punjab released 40, 23000 metric ton and assisted sister provinces - mainly K-P - by providing 12, 23000 metric ton wheat or wheat flour paying subsidy and incidental charges from its own exchequer.
"The real issue is that wheat is the staple food and traditionally, the federal government use[d] to announce a uniform support price in consultation with the provinces till this year,” the Punjab government said.
The Punjab government also claimed that it had issued directions to all departments concerned to ensure free movement of wheat and wheat products inside and outside Punjab.