ISLAMABAD: The Standing Committee on National Food Security and Research of the National Assembly expressed concern over the smuggling of wheat and fertilizer and requested that appropriate measures be taken to stop the problem to guarantee the supply of the good at reasonable prices throughout the nation.
The committee, which met here with MNA Rao Muhammad Ajmal Khan as chair, also noted that the increase in flour prices in the local market was caused by wheat smuggling, in addition to the fact that the prohibition on the movement of wheat across provincial boundaries was another factor contributing to the widening gap between demand and supply in deficit areas and price volatility in the open market.
Briefing the committee, Ministry of National Food Security and Research Secretary Zafar Hassan said that there were sufficient stocks of wheat available to tackle local requirements. He said that about 1.224 million metric tons of wheat had also been imported and the remaining quantity of 1.376 million metric tons were in pipeline and would arrive up till March.
He claimed that the delay in the provincial governments' delivery of wheat to millers from official inventories was the primary cause of the price increase. He added that the imbalance between the supply and demand for the good was driving up prices in local markets. He claimed that the federal government supplied wheat to 11 other national organizations in addition to the provinces, and he added that since the recent floods had raised demand from the provinces, more wheat will be imported, amounting to an additional 0.6 million tons.He informed the gathering that the procurement process for the import of 2.60 million metric tons of wheat was finished, noting that the first tender was awarded in May 2022 and the last was awarded in December, while wheat was also being imported from Russia under a government-to-government agreement. The meeting was informed by Zafar Hassan that the Russia-Ukraine war had increased grain prices globally. He also mentioned that local markets had been affected, causing a rise in the cost of various goods.
The meeting was also informed of the status of the Prime Minister Kissan Package and told that a sum of Rs 663.9 billion had been released by the end of November 2022. The State Bank of Pakistan had also released a notification for the release of the funds.
Members of the National Assembly (MNA) Ahmad Raza Manika, Kamal Uddin, and Sardar Riaz Mehmood Khan were among those present during the meeting. The meeting was also attended by the chairman of PARC and other ministry representatives.