Punjab wheat exporters in trouble Sindh Food Department extorting money

Punjab wheat exporters are facing serious problems as officials of Sindh Food Department are said to be extorting money from wheat-laden trucks entering the province. Sources accuse the officials of Sindh Food Department of collecting extortion from exporters ranging from Rs 15,000-20,000 per truck and so far an estimated Rs 25 million has been collected from the wheat exporters of Punjab.
The Ministry of Food and Agriculture (Minfa) has failed to undertake appropriate measures to stop this illegal activity. "It seems as if there was conflict between the Punjab Food Department and the Minfa," sources said. The Punjab Food Department has written many letters to the Minfa requesting action against the relevant officials of the Sindh Food Department in case they do not desist from creating hurdles in Punjab's wheat exports. Punjab in line with the government decision has plans to export over 2.5 million tons of wheat from its stocks.
They added that "As Punjab wheat exporters have to pay an additional amount of money, therefore, they are paying Rs 800-850 per 40-kg to farmers in spite of the fixed support price of Rs 950 per 40-kg. It is the poor growers who are paying the cost of bhatta."
The government agencies including Pakistan Agriculture Storage and Services Corporation (Passco) and provincial food departments of all the four provinces have so far purchased nearly 4.9 million tons of wheat.
According to official data available with Business Recorder, the government has set wheat procurement target for 2011 at 6.57 million tons of which 3.5 million tons have to be purchased by the Punjab Food Department, 1.3 million tons by Sindh Food Department, 1.3 million tons by Passco, 0.4 million tons by Khyber Pakhtunkhwa and 70,000 tons by Balochistan.
The government has set May 31st deadline for completion of wheat procurement process across the country, but so far public sector organisations have only lifted 4.9 million tons of wheat. Sources in the Minfa told BR that this year private sector also played an important role in purchasing wheat. They said private sector has purchased an estimated 3 million tons of wheat from across the country.
Sources said the Punjab Food Department has purchased 2.65 million tons wheat so far from growers @ Rs 64 billion while it is being estimated that for the procurement of the targeted 3.5 million tons wheat, it will require an additional amount of Rs 21 billion. Farmers across Punjab have criticised the provincial government for slow procurement, which caused billions of rupees losses to poor farmers.
Tariq Mehmood, President, Pakistan Kissan Ittehad, Punjab chapter said that due to negligence of the provincial food department middlemen have taken full advantage of the situation and farmers were forced to sell their commodity at throwaway prices. He said majority of farmers in Punjab have sold their commodity at Rs 800-850 per 40-kg.
Tariq said in 2008-09 the government had fixed wheat support price at Rs 950 per 40-kg which resulted in bumper wheat crop for consecutive three years as in 2008-09 Pakistan's overall wheat production stood at 24 million tons, in 2009-10 it produced 23.86 million tons and this year wheat production would cross the projected target of 25 million tons.