Passco had bought 4 million kg of rice from the open market in 2008-09 on the directive of the federal government in a bid to keep paddy prices at the level set by the government. PHOTO: FILE
The Pakistan Agriculture Storage and Services Corporation (Passco) intends to re-invite tenders for sale of 2.01 million kg of rice as bidders have offered a maximum price of Rs45 per kg in tenders opened earlier this week.
Passco’s General Manager Field Brigadier (Retired) Rashid Mehmood told The Express Tribune that they had opened the tenders, but the maximum price quoted was Rs45 per kg.
“It is a very low price and the management is thinking about floating tenders again to fetch higher prices,” he said.
Passco had bought 4 million kg of rice from the open market in 2008-09 on the directive of the federal government in a bid to keep paddy prices at the level set by the government and protect farmers from loss, an official aware of the developments said but requested anonymity.
Of the total quantity, Passco sold about 2 million kg at Rs75 per kg in the open market in the 2009-10 season by inviting tenders. The remaining stock was kept at Hadi Rice Mills in Daska.
Later, the mill owners claimed dues of Rs2.3 million pertaining to husking of paddy, but the corporation refused to pay, the official said. This prompted the mill owners to refuse lifting of the commodity before clearance of dues.
In April this year, the federal government appointed a new managing director of Passco, Captain (Retired) Tariq Masood. He immediately engaged into negotiations with the mill owners and with the help of police forcefully took possession of the commodity and stored it in the corporation’s storage at Manga Mandi in the last week of April.
“This rice has been kept in storage for a long time and has lost its quality and nutritional value; it will attract lower prices in the open market,” the official remarked. “Rice that is one or two years’ old is considered more healthy and rich in nutrition, but after three years the commodity loses its quality.”
Passco purchased the commodity at Rs75 per kg and now it fetches a maximum of about Rs45 per kg. At this price, it would face a loss of millions of rupees, he said.
Passco had fumigated the stock in the storage, but the commodity was losing its quality day by day, he added.
Passco, which was established in 1973 and commenced operations in May 1974, is a public limited company and is run by a board of directors.
It is working under the mission statement, “under the direction of government of Pakistan, (it) plays a key role in provision of food security at the national level.”
Its functions include procurement of wheat and other agriculture commodities, if required, and ensuring payment to farmers of support prices of wheat, paddy, gram, potato, onion and other specified agriculture commodities.
It also keeps wheat in storages, supply it to provinces and regions facing shortage as well as to armed forces throughout the year and maintain strategic reserves.
Published in The Express Tribune, June 13th, 2014.
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...and the people involved will all become USD millionaires all over again.