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Wheat procurement target for Punjab may be raised

ISLAMABAD-The Economic Co-ordination Committee (ECC) in its meeting here on Tuesday is likely to increase wheat procurement target by 1.5 million tonnes for the coming crop, it is reliably learnt.

Sources in the Agriculture Ministry, which has actually moved a summary to the effect, told this correspondent the revised procurement target is likely to be set at 5.5 million tonnes against the existing 4 million tonnes to procure maximum crop from the farmers whose confidence in the government's policies was badly shattered last year when they were forced to sell their cash crop at reduced price of Rs 240 per 40 kg against official support price of Rs 300 due to drastic decrease in the procurement target from 8 million tonnes in 1999-2000 to 4 million tonnes in 2000-2001.

The meeting, to be presided over by Finance Minister Shaukat Aziz, would also discuss the existing sugar situation, price index, and a host of other important items. Sources in the Agriculture Ministry, who provided a copy of the summary, said the procurement target is being enhanced after the Punjab government asked the Centre to procure maximum crop from the wheat growing province to avoid wheat price crisis that had crippled the whole farm sector last year.

Officials said this huge price crisis had really brought the farmers to their knees, as, according to an official estimate, about Rs 20 billion were transferred from rural to urban sector in the shape of depressed prices of the commodity as wheat was sold at Rs 240 against official support price of Rs 300.

This situation had produced more poverty in the already distressed rural areas of the country where wheat is considered to be the main cash crop. According to the summary, the Agriculture Ministry has informed the government that the Punjab government was seeking an enhancement in procurement target because of expected good crop.

The Punjab government, according to Agriculture Ministry officials, is of the view that the procurement target be increased from the present 4 million tonnes to 5.5 million tonnes for Punjab. Punjab said it was ready to enhance its procurement target from existing 2.5 million tonnes to 3.5 million tonnes.

It said on the same lines, the Passco be asked to buy 1.5 million tonnes against its existing target of 1 million tonnes. The rest of the two provinces -- Sindh and Balochistan -- will however continue to buy 0.4 million tonnes and 0.1 million tonnes, respectively.

But the sources said nobody is ready to realise the actual problem, which has made these things worse for the farmers. They said the main problem the provincial and federal governments are facing is that of non-availability of storage facilities.

In Punjab due to this deficiency, the wheat is still lying in the open fields and getting deteriorated. The officials said the much-trumpeted efforts on the part of the Agriculture Ministry to frame a new storage policy for the private sector is yet to be finalised despite the fact that over one year has passed since Chief Executive General Pervez Musharraf had asked the Agriculture Ministry bosses to frame it to enable the private sector to buy maximum crop from the farmers.

The Board of Investment, CBR and Commerce ministry were also involved in this Herculean task but no one knows about its fate, as the whole exercise has almost come to an end. As a result, the farmers continue to suffer as both the private sector and government agencies are not ready to buy the crop in the absence of required storage facilities.

The sources said the Agriculture Ministry bosses were just busy in lip service to such an issue of national importance and so far no one from the top has dared to ask about such unnecessary delay.

courtesy Daily The News ,16 April, 2002

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