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ECC okays import process for 3m tonnes of wheat

muhammadhafeezmalik

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On top of a bumper crop output of 27.2 million tonnes, the Economic Coordination Committee (ECC) of the Cabinet on Wednesday gave a go-ahead to start the process for import of 3m tonnes of wheat to build strategic reserves. However, the committee stopped short of increasing wheat imports to 4m tonnes.


The meeting, presided over by Finance Minister Shaukat Tarin, continued to approve technical supplementary grants worth Rs56 billion even after the presentation of the federal budget to the parliament. The meeting also approved a revised policy for regulation of non-governmental and non-profit organisations (NGOs/NPOs) to receive foreign funds and allow supply of a total of 1m tonnes of wheat to Khyber Pakhtunkhwa from local crop and imported quantities on a 50:50 basis.


Informed sources said the Ministry of National Food Security and Research (MNFSR) had requested the ECC to enhance the permission for wheat import to 4m tonnes for strategic reserves in a bid to deter hoarding and black marketing. The federal cabinet had already ratified an earlier ECC decision for the import of 3m tonnes a couple of months ago but the process could not begin.


The meeting was informed, these sources said, that the Ministry of Commerce through the Trading Corporation of Pakistan (TCP) was looking at the international market for imports in July-August deliveries based on lowest price windows, in line with the Chicago forward trading.


The MNFSR wanted to increase the approved quantities to 4m tonnes for follow up intervention without waiting for lengthy approval process, perhaps in September or so, in line with a recent decision of the National Price Monitoring Committee.


As such, the ECC directed that the commerce ministry and TCP should first line up imports of 3m tonnes. The committee further directed the ministry and TCP to come back to it after two-three weeks for an additional 1m tonnes of wheat.


“The ECC approved the request of the MNFSR for import of 3m tonnes of wheat subject to approval by PPRA Board for building up the strategic reverses of wheat in the country,” an official statement said.


The ECC also approved a request by the MNFSR for the provision of 500,000 tonnes of wheat to the KP government out of the Passco stocks during the crop year 2021-22 on the usual terms and conditions.


When we had achieved the target of wheat procurement, why we would Import more wheat??
 

Bilal.

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On top of a bumper crop output of 27.2 million tonnes, the Economic Coordination Committee (ECC) of the Cabinet on Wednesday gave a go-ahead to start the process for import of 3m tonnes of wheat to build strategic reserves. However, the committee stopped short of increasing wheat imports to 4m tonnes.


The meeting, presided over by Finance Minister Shaukat Tarin, continued to approve technical supplementary grants worth Rs56 billion even after the presentation of the federal budget to the parliament. The meeting also approved a revised policy for regulation of non-governmental and non-profit organisations (NGOs/NPOs) to receive foreign funds and allow supply of a total of 1m tonnes of wheat to Khyber Pakhtunkhwa from local crop and imported quantities on a 50:50 basis.


Informed sources said the Ministry of National Food Security and Research (MNFSR) had requested the ECC to enhance the permission for wheat import to 4m tonnes for strategic reserves in a bid to deter hoarding and black marketing. The federal cabinet had already ratified an earlier ECC decision for the import of 3m tonnes a couple of months ago but the process could not begin.


The meeting was informed, these sources said, that the Ministry of Commerce through the Trading Corporation of Pakistan (TCP) was looking at the international market for imports in July-August deliveries based on lowest price windows, in line with the Chicago forward trading.


The MNFSR wanted to increase the approved quantities to 4m tonnes for follow up intervention without waiting for lengthy approval process, perhaps in September or so, in line with a recent decision of the National Price Monitoring Committee.


As such, the ECC directed that the commerce ministry and TCP should first line up imports of 3m tonnes. The committee further directed the ministry and TCP to come back to it after two-three weeks for an additional 1m tonnes of wheat.


“The ECC approved the request of the MNFSR for import of 3m tonnes of wheat subject to approval by PPRA Board for building up the strategic reverses of wheat in the country,” an official statement said.


The ECC also approved a request by the MNFSR for the provision of 500,000 tonnes of wheat to the KP government out of the Passco stocks during the crop year 2021-22 on the usual terms and conditions.


When we had achieved the target of wheat procurement, why we would Import more wheat??
As per stated policy of Finance Minister, to form strategic reserves of around 4m tons. In recent interview he pointed that that was the level of strategic reserves for wheat when PMLN came to power and by the end of its rule the reserves were completely depleted.
 

muhammadhafeezmalik

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As per stated policy of Finance Minister, to form strategic reserves of around 4m tons. In recent interview he pointed that that was the level of strategic reserves for wheat when PMLN came to power and by the end of its rule the reserves were completely depleted.
We had excess wheat stock in 2018 so we had exported the wheat in 2018-19 to lay off excess stocks.
 

Bilal.

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We had excess wheat stock in 2018 so we had exported the wheat in 2018-19 to lay off excess stocks.
Strategic reserves. Per the recent interview, it was 4m tons start of PMLN gov and was depleted. Not temporary stocks of a few hundred thousand from the last harvest.
 

muhammadhafeezmalik

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Strategic reserves. Per the recent interview, it was 4m tons start of PMLN gov and was depleted. Not temporary stocks of a few hundred thousand from the last harvest.
In the last two years of PMLN, government had procured 18 million tonns. PASSCO maintain strategic reserves which had more than sufficient stock in November, 2018.

1623925540870.png
 

Bilal.

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Even with reserves, the Inept Buzdar sarkar will fail to stop hoarding and price manipulation.
View attachment 754213
Bro the reserves are being formed now. Had they not been depleted, it would have given a tool to the government by flooding the market to control the price and discouraging hoarders.
In the last two years of PMLN, government had procured 18 million tonns. PASSCO maintain strategic reserves which had more than sufficient stock in November, 2018.

View attachment 754211
Procurement =/= strategic reserves

Strategic Reserves depleted from 4m to nothing.

And the mess was all left for the next government. Just like FX reserves, BOP, FATF, etc.
 

muhammadhafeezmalik

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Bro the reserves are being formed now. Had they not been depleted, it would have given a tool to the government by flooding the market to control the price and discouraging hoarders.

Procurement =/= strategic reserves

Strategic Reserves depleted from 4m to nothing.

And the mess was all left for the next government. Just like FX reserves, BOP, FATF, etc.
Firstly strategic reserves are being maintained since 500 years in India and last 73 years of Pakistan.
Secondly, can you share any document that states that stretegic reserves were depleting hence PTI government exported the wheat??
 

Bilal.

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Firstly strategic reserves are being maintained since 500 years in India and last 73 years of Pakistan.
Secondly, can you share any document that states that stretegic reserves were depleting hence PTI government exported the wheat??
Spent some effort and watch recent interview of FM.
 

muhammadhafeezmalik

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Spent some effort and watch recent interview of FM.
What FM has to do with strategic reserves when there is a whole ministry for this purpose??

This is screenshot of Year Book 2013-14 of that ministry. It clearly states that Passco was established in 1973 for maintaining Strategic Reserves, you don't know this basic fact.

1623929674397.png



The same is stated without changing a word in last published year book of Ministry of MFSR.
 

Bilal.

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What FM has to do with strategic reserves when there is a whole ministry for this purpose??

This is screenshot of Year Book 2013-14 of that ministry. It clearly states that Passco was established in 1973 for maintaining Strategic Reserves, you don't know this basic fact.

View attachment 754222


The same is stated without changing a word in last published year book of Ministry of MFSR.
Again dig out what he said, I won’t do it for you. If he is stating something wrong then PMLN can challenge and disprove him.
 

Bilal.

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I am challenging you, if you can't prove your statement than accept that either you are ignorant or or lying.
Lol. You can believe whatever you want. You don’t hold any significance for me to prove anything. I am not going to spend time and effort to search it for you. I have pointed the source of information is one Shaukat Tareen’s recent interviews in one of the talk shows. If you feel like you can search it, if not I don’t give a damn, you are a nobody.
 

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