KARACHI (March 17 2004): Wheat shortage in Sindh has been created due to mismanagement by various government functionaries, flour-mills, chakky owners, wheat traders and middlemen, resulting in atta price sky-rocketing to Rs 16 per kg and even to Rs 20 in some areas.

Inquiries reveal that the federal government procured only 3.5 million tonnes, as against 5.3 million tonnes, while the private sector was allowed to lift 1.8 million tonnes as part of the measures to redress the perennial complaints by the farmers that they were not getting adequate price tag for their crop.

In 2002, the wheat procured by the public sector was 4 million tonnes.

The wheat consumption during 2003-4 had been estimated as 19.789 million tonnes as against the total availability of 20.242 million tonnes, including the carry over stock of 0.992 million tonnes and production of.19.225 million tonnes, leaving a surplus of 0.458 million tonnes.

During 2001-02 wheat was sown on 875,224 hectares of land and the final production was 2,100,988 tonnes, while in 2002-2003 the province saw sowing in 863,684 hectares of land and its final estimated production of wheat stood at 2,109,157 tonnes.

Sindh being the wheat deficit province relies heavily on its procurement targets, Minfal and Passco. Most of the time, the Punjab province has assured to meet its wheat demand.

SHORTFALL: According to official figures collected, for Karachi's 9.2 million population (census figure), there is requirement of 1.141 million tonnes at 124 Kg per soul per annum.

The unlisted 3 million souls require 0.372 million tonnes and 2.578 million tonnes for 2.791 million population other than the Karachi's population.

Thus there is shortfall of 2.191 million tonnes of wheat as worked out for crop 2003 by the Food Department.

Sindh Food Department is also operating under the State Trading Scheme through which wheat is procured from growers at the support price, now raised to Rs 350 per 40 kg, fixed by the federal government during the harvesting period.

The procured wheat is stored in godowns, having a total capacity of just over 0.7 million tonnes, and it is then released to flour mills and chakkies for grinding into atta for public consumption.

Sindh produces about 2.10 million tonnes of wheat against its requirement of over 4 million tonnes during crop-2003. Due to free movement of wheat, about 1 million tonnes of Punjab wheat finds its way to flour-mills/chakkies and feed mills of Sindh.

In order to stabilise the prices of wheat and its by-products, the government's intervention is somehow necessary and therefore, department partially releases wheat stocks to flourmills and atta chakkies on the basis of restricted number of functional roller bodies/stone grinders.

The pressure on the government-subsidised wheat is especially 'tough' during the 'lean' period beginning from December of each year till the arrival of 'new' crop in March/April.

On inquiries through various sources, APP learnt that about a year or two back, Sindh Food Department used to release the government subsidised wheat to the flour-mill/chakky, which possessed food grain licence and regular in lifting of wheat.

APP has learnt on good authority that such guidelines proved useful as illegal trading vanished and genuine mills remained in the field. Around 60 percent of flourmills and chakkies had closed down during implementation of this policy during 1999-2001.

Courtesy Business Recorder