Wednesday, May 7, 2008, Rabi-ul-Sani 30, 1429    

Import of 250,000 tons wheat okayed
PM calls for steps to ensure food security

Sharafat Kazmi

Islamabad—Prime Minister Syed Yousuf Raza Gilani directed the Ministry of Food & Agriculture to ensure food security and approved the import of 250,000 tons of wheat immediately as the international prices are showing downward trend this year. He directed that staggered import of 1.5 million tons of wheat be made to meet the expected shortfall of 1.5 million tons in the country and take all necessary measures to overcome food shortage all over the country.
The Prime Minister stated this while addressing the third ECC meeting here at the Prime Minister’s Secretariat on Tuesday.
The meeting was informed about the Sensitive Price Indicator, which shows increase in 23 items, decrease in 6 items while 24 items price have registered no change. The meeting was further apprised that the percentage increases in the prices in the last week are much lower than the increase in the prices over the last ten weeks.
On the current wheat situation, the meeting was informed that the estimated procurement target of wheat for the year 2008-09 is five million tons, out of which a total of 2.121 million tons (42%) has already been procured as compared to 2.054 million tons in the corresponding period last year.
In order to ensure the availability of atta at an affordable price through Utility Stores Corporation, the Prime Minister also directed for the constitution of a committee to take concrete measures for launching a scheme enabling the poorest of the poor to get subsidized essential food items. The committee would consist of representatives from the Ministry of Finance, Industries, Social Welfare and NADRA to prepare a database that target only the needy household.
Regarding the ban of wheat to the feed industry, the Prime Minister directed that alternative options be sought for the feed industry as it is the second largest industry of the country.
As regards the export of wheat to Afghanistan the Prime Minister directed that it should be undertaken on government to government level only. He said that Pakistan will continue to provide wheat/wheat flour to Afghanistan as per past practice. The ECC approved the export of 50,000 tons of wheat to Afghanistan to avert food crisis in addition to their annual requirement.
The meeting also decided to strengthen anti-smuggling measures to check wheat smuggling.
While observing that the rice production is surplus in Pakistan, the ECC decided that the export of rice must be undertaken only after meeting the domestic requirements and ensuring the stability of the prices. The ECC was further apprised that Pakistan’s domestic consumption of rice is little over 2 million tons whereas the production of rice this year has gone up to 5.5 million tons.
The ECC authorized MINFAL to undertake negotiations with the well known American multi-national company “MONSENTO” aimed at introducing technology for genetically modified seed as it is the major reason for reduction of cotton crop in Pakistan from 14 million bales to 11 million bales this year.
Chairman FBR informed the meeting that FBR has so far collected Rs. 761 billion by 30th April, 2008 and expressed the confidence that the revised target of Rs. 990 billion would be met during the remaining two months of the current financial year.