ECC allocates Rs9bln to supply low-priced wheat

ISLAMABAD: Government on Monday earmarked around nine billion rupees to supply 200,000 tons of subsidised wheat in the country as there appears a shortage of flour at the discounted price amid coronavirus lockdown.

The Economic Coordination Committee (ECC) of the Cabinet approved the allocation of additional 200,000 metric tons of wheat for state-run Utility Stores Corporation (USC) from Pakistan Agricultural Storage and Services Corporation (Passco) during a meeting presided over by Adviser to the Prime Minister on Finance and Revenue Hafeez Shaikh.

The approved quantity would be released in tranches. The first tranche would be of 50,000 metric tons, which would be released immediately. The remaining would be released on demand by USC.

“The total cost of this package is Rs8.690 billion including incidental charges of Rs1.690 billion,” the finance ministry said in a statement.

The government had already released 200,000 tons of wheat to the USC to bring the flour price down to Rs40 per kilogram. But, the price was increased to Rs225/10-kg bag from Rs220 in February with wheat flour having disappeared from the USC outlets. The difference between the flour’s market and USC prices continue to be narrowed and therefore consumers are forced to buy the staple food at higher price from open markets. Shaikh said the record of the USC and Passco might be completely computerised to ensure transparency and facilitate decision making.

There was also a discussion in ECC on data collection from private flour mills in order to ascertain the correct situation of demand and supply of wheat/flour in the country and to ensure accuracy in decision making.

The government allowed the private sector to import up to 0.3 million tons by waiving 60 percent regulatory duty and other taxes. The food year started with the leftover stock of wheat at the tune of 3.777 million tons. Provincial crop reporting centers reported the production estimates of wheat crop for 2018/19 at 24.479 million tons as compared to the production of 25.51 million tons of the corresponding period of last year. The total availability of wheat during the current year was estimated at 28.256 million tons, including leftover stock of 3.777 million tons as compared to the country’s requirement of 26.91 million tons.

Finance adviser further asked the poverty alleviation division to ensure transparency and efficiency in disbursement of funds to the vulnerable in wake of coronavirus COVID-19 situation in the country.

Secretary Poverty Alleviation Social Safety Division assured the ECC that no one would be allowed to swindle the poor people of the country. He further said the multiple arrests have already been made and exemplary punishment would be given to those who would cheat the poor. It was told that so far 1.7 million families had been paid under the Ehsaas program and payments to remaining families are underway.