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Punjab Clarifies Wheat Transportation Policy Amid Abundance Crisis; KP Saves Billions with Direct Procurement
Punjab assures no bans on wheat transport amid bumper crop season. KP government bypasses Passco, saving Rs12bn by directly procuring wheat from farmers.
ND
by News Desk
2024-05-20
Punjab Clarifies Wheat Transportation Policy Amid Abundance Crisis; KP Saves Billions with Direct Procurement

The Punjab Food Department has issued a clarification stating that there are no bans on the inter-province or inter-district movement of wheat. This announcement comes in response to recent confusion caused by the misinterpretation of a notification, which led to reports suggesting restrictions on grain transportation.

 

Punjab is currently dealing with a wheat abundance crisis due to the caretaker government's heavy import of grain coinciding with the local harvest season. Normally, the provincial government procures over four million tonnes of wheat annually. However, this season, despite initiating a "grow more wheat" campaign last October and November, no wheat has been purchased by the government.

 

Farmers, who are experiencing a bumper crop, are now compelled to sell their produce in the open market at significantly lower prices—Rs1,000 per 40kg—compared to the official minimum support price of Rs3,900 per 40kg.

 

A notification circulating on social media suggested that officers of good repute be posted at check-posts to curb smuggling, leading to speculation about a ban on inter-provincial wheat movement. A spokesperson for the Punjab Food Department clarified on Sunday that this was a misunderstanding, and no restrictions had been imposed.

 

The spokesperson explained that the policy allows for the free movement of wheat within and outside the province, without the need for special permits. The aim of the recent directive was to appoint vigilant staff at checkpoints to prevent smuggling, not to restrict wheat transportation.

 

In another significant development, the Khyber Pakhtunkhwa (KP) government has decided to bypass the Pakistan Agricultural Storage and Services Corporation (Passco) for wheat procurement. This decision is projected to save the provincial government at least Rs12 billion.

 

During a press conference at KP House in Islamabad, KP Food Minister Zahir Shah announced that the province would directly purchase wheat from farmers at the rate of Rs3,900 per 40kg, in contrast to Passco's rate of Rs5,600 per 40kg. The KP government plans to buy at least 300,000 tonnes of wheat from local farmers, ensuring transparency and prioritizing local produce over imported grain.

 

"The provincial government has already started purchasing wheat, initially focusing on local growers. From May 17, farmers from Punjab will also be permitted to sell their wheat," Shah elaborated. He emphasized that any attempts by officials to procure imported wheat for the government would be met with strict disciplinary action.

 

Shah also highlighted the reduction in flour prices, noting that a 20kg bag of flour now costs Rs1,650, down from Rs3,200. This price drop reflects the province's efforts to manage wheat procurement efficiently and benefit consumers.

 

These developments underscore the ongoing challenges and policy responses in Pakistan's wheat sector, aiming to balance local agricultural support with market demands and prevent artificial shortages.
Tagged:

PUNJAB

KPK

Agriculture

EconomicPolicy

WheatCrisis
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