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Govt to purchase 1.8 MMT wheat from local market worth of Rs.201 billion

ISLAMABAD:- The Economic Coordination Committee (ECC) approved the wheat procurement target of 1.80 Million Metric Tonne at with the support price of Rs. 3,900/40kg along with the Cash Credit Limited of Rs.201 billion for year 2023.

The ECC met under the chairmanship of Finance Minister Ishfaq Dar here on Wednesday.

Keeping in view the aforementioned situation, additional demand of wheat from PASSCO’s stock from Punjab, Sindh, Khyber Pakhtunkhwa and Balochistan, minimum level of carry-forward stocks and prevailing pricing trend in the local wheat market, the ECC approved the recommendation of Ministry of National Food Security & Research to assign wheat procurement target of 1.80 Million Metric Tonne at procurement price of Rs. 3,900/40kg for year 2023.

On 02-03-2023, PASSCO reported public wheat stocks of 1,552010 Metric Tonne. With the remaining import of 612,103 MT, out of approved import of 2,652,538 MT, the total availability with PASSCO would be 2,164,113 MT. The projected release from PASSCO’s stock is estimated at 638,848 MT, leaving behind carry-forward stock of 1,325,265 MT at the start of new food year on 01-04-2023.

The PASSCO through a letter on 02-03-2023 has informed that the pending liabilities of PASSCO on account of Provincial Governments, strategic organizations and Food Departments of AJ&K and GB are reported at Rs. 110.092 Billion (Annex-B). In order to procure local wheat and to meet the assigned target of 1.80 MMT, tentative Cash Credit Limit (CCL) of Rs. 201.00 billion @ procurement price of Rs. 3,900/40 Kg would be required. This amount constitutes of Rs. 175.5 billion for purchase of local wheat, whereas remaining Rs. 25.5 billion would be utilized on account of incidental charges and purchase of bardana etc.

Last year PASSCO was assigned procurement target of 1.20 MMT, however, on the direction of the PMO, the target was enhanced to 1.70 MMT. The PASSCO’s wheat procurement during last 10 years is given as Annex-D. For ensuring procurement of strategic reserves and stock for recipients of PASSCO, Government of Punjab has been requested to assign additional 16 Tehsils for procurement by (Annex-E).

The wheat crop harvesting has already started from Southern Sindh, Provincial Crop Reporting Services (CRS) have reported wheat crop sowing an on 02-03-2023 at 21.94 million acres or 96% of the target area due to crop substitution in Punk b and lean flowing in Sindh due to standing water of rains and floods.

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