Lower market price may hit wheat yield in next Rabi season

ISLAMABAD: The initial forecast indicates that the production of wheat is expected to decline in the next Rabi season due to the lower price of wheat in the market.

This was revealed by senior officials of the Ministry of National Food Security and Research while briefing the Senate Standing Committee.

The Senate Standing Committee on National Food Security and Research, chaired by Syed Masroor Ahsan, on Tuesday discussed the recent status of cess recovery from the textile industry.

The Senate Committee was also briefed on the role of the Wheat Board and the members comprising the board. Officials apprised the committee that the Wheat Board, comprising 27 members, including wheat growers, was constituted following the recommendation of the Senate Standing Committee.

The board is mandated to ensure the availability of agricultural inputs for wheat growth and the evaluation of the cost of wheat crop production in consultation with the provinces. However, the initial forecast indicates that the production of wheat is expected to decline in the next Rabi season due to the lower price of wheat in the market. As a result, the yield of wheat is expected to be low in the next Rabi season.

The committee was informed that last year the availability of wheat seed was 0.529 million metric tons. The country’s wheat seed requirement this year is 1.1 million metric tonnes.

The ministry officials informed that 0.592 million metric tons of wheat seed was available this year. The Wheat Board is responsible for wheat seed requirements, as well as it also recommends about the import and export of wheat to the Economic Coordination Committee of the Cabinet. The committee was informed that in view of the country’s needs, the export of wheat has been stopped. Currently, the consumption of wheat in the country is more than 32 million metric tons. There are reserves in all four provinces of eight million metric tons and the decision will be made in March whether to export wheat or not.

Officials apprised the committee that approximately Rs3 billion in cess arrears are owed by textile industries. Instead of paying the dues, 121 textile industries filed 65 cases against the amount, of which, 63 were decided in favour of the Pakistan Central Cotton Committee. However, two cases are pending in the Peshawar High Court.

In the year 2023-24, the Cotton Commission collected around Rs293 million in cess. Currently, 184 textile industries are paying the cess, and 157 are not responding.

Aimal Wali Khan inquired about the role of the Pakistan Central Cotton Committee (PCCC) and the rules under which such a committee was constituted.

The PCCC, constituted under an act of Parliament, is chaired by the federal minister, with members including APTMA, provincial secretaries of the Agriculture Department, and cotton growers from all four provinces.

The committee deferred the matter, stating that officials failed to provide a breakdown of cess owed by textile industries.

Ahsan highlighted the issue of pensions for employees of the Pakistan Cotton Standards Institute. He directed that pensions should be provided to these employees, stating that they had dedicated their lives to the institution and that the pensions should be disbursed as soon as possible.

Furthermore, the committee was briefed on the role and function of PASSCO along with the budget for the last three years.

PASSCO MD Sarfaraz Durrani informed the committee that the primary function of PASSCO is to maintain strategic reserves of wheat at the national level to ensure food security.

Additionally, PASSCO extended social welfare to farmers by providing a support price to stabilise the market price. To run its operations, PASSCO borrows money from six commercial banks for the procurement of wheat.

These banks own a 75 percent share, while the remaining 25 percent share of PASSCO is owned by the Government of Pakistan.

The PASSCO has not received any budgetary grants from the Government of Pakistan to run its operations. As of now, PASSCO has receivables of around Rs194.746 million, which are owed by the Food Departments of all provinces, including Azad Jammu and Kashmir, the Government of Pakistan, and the Pakistan Army.

Recently, PASSCO has taken disciplinary action against 249 employees, including two senior general managers, involved in corruption to enhance the performance of PASSCO.

The committee decided to constitute a sub-committee to investigate the recent scandal of wheat imports and named Senator Aimal Wali Khan as its convener.

In attendance were senators, Aimal Wali Khan, Abdul Wasay, Poonjo Bheel, Dost Muhammad Khan, and Danesh Kumar. Secretary for National Food Security and Research Ali Tahir, Managing Director PASSCO Sarfaraz Durrani, and other senior officials from the concerned departments were also in attendance.