Business

Wheat purchase: ECC yet to approve PASSCO’s increased quota

Ministry seeks increase from 800,000 to 1.2m tons.

Peer Muhammad May 07, 2015

The ministry suggested in a summary at the end of March that Passco’s quota for wheat storage should be increased from the existing 800,000 tons to 1.2 million tons. PHOTO: REUTERS

ISLAMABAD: The Economic Coordination Committee (ECC) has yet to approve the proposal of the Ministry of National Food Security and Research to enhance the wheat storage quota of the Pakistan Agriculture Storage and Services Corporation (Passco).

The ministry suggested in a summary at the end of March that Passco’s quota for wheat storage should be increased from the existing 800,000 tons to 1.2 million tons so that provincial authorities faced no difficulties in storing the commodity.

An official in the ministry told The Express Tribune that the ministry was still waiting for the ECC’s approval despite many meetings held since the proposal was floated.

Officials said some additional funds would be required for enhancing Passco’s wheat procurement quota, which was the reason for the finance ministry’s reluctance to give its nod.

“The ECC in a meeting held in April discussed the issue but the matter was deferred due to the finance ministry’s reluctance to provide the additional funds required for enhancing the quota,” said the official.

The reason for increasing the procurement target is that in the past provinces had surplus wheat in their storages and they could not buy more from the farmers, which discouraged the growers amid bumper crops for three consecutive seasons. The country again expects to harvest a bumper crop this season.

Published in The Express Tribune, May 8^th, 2015.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.

COMMENTS (1)

Adeel MIrza | 9 years ago | Reply Pakistan is not only self sufficeint in this commodity but can also export the excess quanties to fetch foreign currency. Unfortunately, the cost fo keep wheat stocks in Pakistan is quite high due to hefty commercial borrowings to procure wheat during the season coupled with debt and interest servicing cost. Moreover, the inventory carrying cost is high due to inefficient mechanism of storage. The commodity department needs to build propoer silos for wheat storage in order to prevent it for losses due to floods and pesticides. Another factor that requries attention of authorities is mechanism of wheat procurement which ishighly tilted towards paid farmers of political families.

Replying to X