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Storage shortage to hamper wheat procurement               

By Saleem Shaikh

AS the Sindh government is beset with a storage problem for the new wheat crop, it may stagger purchases or lower the procurement target, this scribe has gathered from official sources.

Often the storage problem results in financial losses to the provincial exchequer. The unsafe and unscientific storage of wheat crop in poorly maintained godowns sometimes damage the grain, admit officials in the provincial planning and development department.

Approximately 3.2 million tons of wheat is expected from the current Rabi crop, sown on some 1.020 million hectares. The provincial target of 1.5 million ton procurement is much in excess of its storage capacity of around 0.6 million tons, said food director in the provincial food department and added: “The remaining 0.7 million tons procured wheat would be put in privately rented godowns.”

The official recalled: “Last year, the provincial food department picked up around 1.2-1.3 million tons wheat, half of which was stored in government godowns and the rest in privately rented godowns that cost Rs30 million to the provincial government. ”Some 100,000 ton surplus stock of last year is still lying unsold.
 


It would be difficult for the government to store fresh stocks when it failed to get rid of the previous year’s carryover of 100,000 tons, says Mohammad Yousuf, chairman All Pakistan Flour Mills Association, Sindh chapter.

Last year, the flour mills association arranged for storage of the provincial government’s around 0.1 million tons wheat in its own godowns but this year it is going to be difficult to provide additional storage space for the large quantity of new wheat procured by the food department,” recalled Yousuf.

The provincial food director insists the government would succeed in selling the old wheat stock surplus before the new wheat arrives at government godowns.

It would cost around Rs35-40 million to the provincial exchequer to store the new crop in private storages, a food department official said.

“Storing half a million ton wheat in private godowns was the only option. Because, building of new godowns or silos was not possible in a matter of one year or two,” said a food department official.

Amin Memon, growers’ leader in Badin, remarked: “This year again if the provincial government opts for storing fresh wheat in private godowns, the damage to grain stocks cannot be ruled out because these godowns lack scientific and safe storage facilities.”

“Unless the Sindh government takes timely initiatives for building up modern grain storage facilities and upgrading the existing ones, things would not improve, says wheat trader Khair Mohammad Shaikh, who also advises Sindh Chief Minister on procurement matters.

He deplored that though money is provided in the budget every year for the construction of modern silos, the allocations lapse

Courtesy: The DAWN

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