|
Main Page
|
 |
|
News Channel |
|
Private buyers have an edge: Wheat procurement
LAHORE, April 22: The
government's decision to bear freight charges for
wheat procured and ban on inter-district movement
of wheat has confirmed reports that Punjab's wheat
procurement drive was facing a tough and unequal
challenge from private buyers.
The administration has also disallowed purchase of
wheat by buyers who do have licence for the
business, Chief Minister Pervez Elahi vowing to
stop them 'at any cost', a declaration that
further authenticates reports that private sector
groups and individuals had established a decisive
edge of the administration's procurement efforts.
The seven-rupee transportation payment per bag of
40 maunds plus Rs1.25 handling charges for the
same quantity has raised the official public
sector price from Rs350 per 40 maund to Rs357.25,
but even that may not counter the private sector
because the price it is offering ranges from Rs365
to Rs375 to farmers.
There is no denying the fact that the provincial
authorities are bending themselves backwards to
meet their procurement target to ensure that there
is no shortage of flour in the coming months and
politically win over farmers but its measures
suffer from built in disadvantages and the growers
understandable preference for a better bargain.
The handling charges were already there but
officials accustomed to exploiting farmers
reportedly pocket the amount themselves that comes
to a reasonable packet over a day's procurement.
In this backdrop, farmers are bound to have
misgivings about the payment of transportation
charges too.
Another constraint for the officials is rules and
regulations that require that payments be
channelled through National Bank, while private
sector buyers move around with ready cash and
ability to instantly settle bargains. The farmers
are obviously more comfortable with at the spot
cash payment.
Further, while transportation charges are an
incentive, private sector buyers pick the grain
from the points regarded as suitable by growers
whereas wheat sold to the provincial
administration needs to be delivered to a
procurement centre.
The additional facility offered by the private
sector saves growers time and labour and is hence
welcomed by them. Further, weighing of the crop is
to the farmer's satisfaction.
The Punjab government is to procure 3.5 tons of
wheat, while Passco has a target of 1.4m tons
procurement. Passco is also finding the going hard
in meeting the target and information provided by
farmers, agriculture sector organizations and even
government officials suggests that the private
sector challenge is formidable and difficult to
beat.
But the provincial government, which made a
determined effort to procure wheat from farmers at
the right price last year too, is undaunted and
exploring all possibilities for obtaining the
required quantity of wheat. Chief Minister Pervez
Elahi has this time instructed that ore
procurement centres be opened to facilitate
farmers access to the centres; Passco is doing
likewise.
The decision to disallow buyers not holding
licenses is not difficult to circumvent for the
private sector because this accords licence
holders buyers a plus point that they can cash
from groups and individuals pushed out of the
procurement field due to this hurdle. The later,
mostly smugglers, may indeed be willing to up the
price to obtain the quantity they require for
serving 'guaranteed sales'.
The DAWN |
|
|
|
|
Pakissan.com; Advisory Point
|
|
