LAHORE (January 10 2004): The country has sufficient stocks of wheat which can easily cater to the domestic requirements till the arrival of new crop, while some particular flour mill owners have raised the issue of wheat shortage to achieve their ulterior motives.

The problem of 'artificial wheat shortage' can be easily tackled through adopting stringent measures with regard to just distribution of wheat to the flour mills and provinces in a transparent manner, well informed sources told Business Recorder here on Friday.

In a recently held meeting of the representatives of provincial food departments with Pakistan Agriculture Storage and Supply Corporation (Passco), it was stated that there was 241,000 tons wheat with the Passco, while Punjab Food Department had stocks of 1,800,000 tons wheat, sources added.

According to these sources, the government has decided to import 150,000 tons wheat, for which tenders had also been called and seven interested bidders have quoted rates of soft white wheat varying from $185 to $251.50 per ton. Interestingly, Pakistan had exported wheat at the rate of $105 per ton, sources claimed.

Total tentative wheat requirement of the country, including Afghanistan, is estimated at 19 million tons for 2003-04. However, the Central Board of Revenue has confirmed that average supply of wheat to Afghanistan was recorded at 40,000 tons per month through private sector.

According to sources, Punjab Food Department has been releasing 12,000 tons wheat to the flourmills on daily basis. However, the quota was enhanced to 18,000 tons last month, making a total of 400,000 tons during December, 2003.

The flour mills, which depend on the supply from Food Department are running under capacity, while those mills which have their own stocks are also receiving their quota from the department and these flour mills refused to lift additional quota. These mills lifted only 200,000 tons wheat out of the enhanced quota of 400,000 tons during the month of December, 2003.

The influential mill owners exerted pressure on the department to reverse its decision regarding enhancement in wheat quota to the mills. Nevertheless, the flour mill owners are exploiting the situation to mint money.

According to them, Punjab Food Department, which had 1,800,000 tons wheat during December 2003, has so far distributed 400,000 tons, leaving behind a stock of 1,400,000 tons. Keeping in view the average supply of about 12,000 tons, the department can consume 900,000 tons wheat till the arrival of new crop, thus leaving a surplus of 400,000 to 500,000 tons.

The new wheat crop is expected to arrive by March 15 in Sindh and by April 15 in Punjab.

Import of wheat is planned for February 15 and if any delay is caused in shipment, there would be no use of imported wheat except spending huge foreign exchange.

The declining trend in the wheat price from Rs 1150 to 1050 per bag of 100 kg during December 2003 also negates the wheat shortage issue, sources said.

If prudent management is ensured, the 400,000 to 500,000 tons surplus wheat can be supplied to Sindh and NWFP.

As such, the government can save substantial amount of foreign exchange, on the one hand and, by enhancing mills quota, can ensure stability in atta price, on the other.

Courtesy Business Recorder