Procurement for flood-hit farmers: Govt to bear half the cost of wheat

ISLAMABAD: The federal government would pick up half of the cost for procurement of wheat for flood-affected farmers through the repurposing of the Locust Emergency and Food Security (LEAF) project.

Sources said that the Ministry of National Food Security and Research while informing the meeting of the ECC about the grave situation with regard to the growing threat of food insecurity, sought funds to support the farmers of flood-affected areas. Sources said that the ministry’s contention was that the farmers in flood-affected areas are in need of support and the government can provide them wheat seeds free of cost.

The ministry stated that recent rains and floods have caused heavy damage to the agriculture of the country. Surveys are in progress to determine the extent of losses in different sectors.

In a proposal presented to the ECC for approval of the Fund, the source added, that the prime minister was requested that in order to facilitate the farmers affected by the flood, the Ministry of National Food Security’s proposal for providing wheat seeds free of cost may be provided.

The ministry added that to address the issue after consultation with provinces and other stakeholders it was proposed that 50 percent of funds would be provided by the federal government through the repurposing of the LEAF project and additional funds to be provided by the Ministry of Planning and Development and 50 percent by the provincial governments.

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The decision was also taken that the National Disaster Management Authority to play the lead role for the procurement and transportation and respective provincial governments would be responsible for the distribution of seed among the flood-affected farmer at the district level.

They added that the Ministry of National Food Security and Research further contended that the fund of Rs 3.4 billion is available with it under LEAFs World Bank-funded project. The purpose of fund is rehabilitation of the affected farmers. The scope of the project was revised and duly approved by the ECNEC held on 7th October 2022 to match further an amount of Rs 4 billion to be provided by the Ministry of Planning, Development and Special Initiatives.

However, to meet the above purpose surrender of funds amounting to Rs 3.2 billion out of development expenditure of Ministry of Planning for the financial year 2022-2023 has been approved in favour of the Food Ministry enabling it to obtain technical supplementary grant of equal amount under their demand LEAF as per procedure.

The Ministry of Food added that keeping in view the growing threat of food insecurity and to support flood affected farmers in the country, Rs 3.2 billion may be approved under technical supplementary grant and subsequent transferred to the NDMA for procurement and distribution of wheat seed to various districts as identified by respective provinces.

Copyright Business Recorder, 2022