The government may impose ban on export of wheat following significant decrease in production of the commodity in the country during Rabi seasoon 2018-19 due to heavy rains "Ministry of National Food Security and Research (MNS&R) has reservation over wheat export and it will raise the matter in next meeting of Economic Coordination Committee (ECC) to put a ban on wheat export," said Secretary MNS&R Dr Muhammad Hashm Popalzai.
He said that according to provincial government reports, the country has produced 24.12 million tons of wheat against the set target of 25.5 million tons from an area of 8.833 million hectares during Rabi season 2018-19.
Heavy rains coupled with hailstorms had affected wheat crop in the country and reduced the size of the crop by 1.28 million tons, Poplazi said.
The secretary while briefing Senate Standing Committee on National Food Security and Research said that country produced 24.12 million tons of wheat against the set target of 25.5 million tons.
He said that with the addition of leftover wheat stock of 3.7 million tons, the total availability of the grain will be 27.9 million tons while total national requirement of the commodity is 25.8 million tons.
"We can meet easily our national requirement through our strategic reserves", he said.
Muhammad Khan Khichi, Managing Director (MD) Pakistan Agriculture Storage and Services Cooperation (PASSCO) told the committee that ECC of the cabinet on November 11, 2018 allowed the organization to offload 100,000 metric tons of its surplus wheat through export via sea route only.
Through open bidding, PASSCO received good rate of Rs 32,759 per metric tons, he said, adding that agreements were singed with four exporters and entire 100,000 metric tons of wheat lifted on April 24,2019.
He said that PASSCO was further allowed to export 0.5 million tons of its surplus wheat by ECC on January 29, 2019. Only one party participated and offered the previous rates of Rs 32,759 per metric tons, he said, adding that agreement was executed for 50,000 metric tons and lifting is in progress. So far a quantity of 40,336 metric tons of wheat has been lifted till June 11, 2019, he said.
Khichi said that decrease in wheat prices in international market from $239 to $196 has discouraged exporters since export of PASSCO wheat had become non-viable. However, international wheat markets are experiencing a renewed surge in prices due to which we expect a positive response in near future.
About wheat procurement, he said PASSCO has so far distributed bardana for 740,153 metric tons amongst the growers while 674,316 metric tons wheat has been received back against the distributed bardana.
Out of 1,100,000 metric tons procurement target, 479,998 metric tons wheat procured in Punjab against set target of 881,500 metric tons, 143,574 metric tons procured in Sindh against set target of 167,500, 48,798 procured in Balochistan against set target of 51,000 metric tons.
He said that the main reason behind less achievement of target is torrential rains and hailstorm in Punjab province. The rains at the time of harvesting not only affected standing crop but also affect per acre yield.
The feedback puts the estimate of damage to crop up to 20 percent and yield reduction up to 10 mounds per acre, he said, adding that the quality of the harvested wheat was also affected resulting in small and shrivelled grain which being below fair average quality was not acceptable to PASSCO.
MD PASSCO said that following losses through natural calamity, flour and feed mills as well as stockiest started buying wheat, escalating the opening wheat prices beyond the support price of Rs 1300 per 40kg making the procurement for the public sector difficult. Open export of wheat of through private exporters also escalate prices in open market, he said.
Dr Khalikd Abdullah, Cotton Commissioner MNFS&R told the committee that government has fixed 15.02 million bail cotton production target for the year 2019-20 from an area of 3.28 million hectares. Sowing target was of 2.785 million bales with 2.44 million hectares area sown as of now, he said.
The meeting was held under the chairmanship of Senator Syed Muzaffar Hussain Shah also attended by Senators Seemee Zaidi Kabeer Shahi, Najma Hameed, Minister for National Food Security and Research, Secretary National Food Security and Research Sahibzada Muhammad Sultan.
Regarding special committee on agriculture proposal to impose duty on cotton import and move a summary for support price, the committee was told that summaries have been sent to bodies concerned and views are awaited from ministry of commerce and Federal Board of Revenue (FBR).
The committee also recommended having meetings of the Pakistan Central Cotton Committee more frequently preferably on quarterly basis.
About availability of water, a senior official of ISRA informed the committee that total reservoir position as of today is 2.512 million acre feet against 1.818 million acre feet in last year and no shortage is being observed as of today. The anticipated water availability this year is 47.77 million acre feet against 39.40 in last year.
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