PM calls for steps to ensure food security, approves import of 250,000 tonnes of wheat

ASSOCIATED PRESS SERVICE

ISLAMABAD : Prime Minister Syed Yousuf Raza Gilani issued directives on Tuesday for steps to ensure food security, and approved an immediate import of 250,000 tonnes of wheat in the wake of downward trend in international prices of the grain. Chairing the meeting of the Economic Coordination Committee (ECC), he also directed to constitute a committee to take steps for launching a scheme to help the poor get essential food items at subsidized rates.
Prime Minister Gilani directed the Ministry of Food & Agriculture to ensure food security and take all necessary measures to overcome food shortage all over the country.
He approved the import of 250,000 tons of wheat immediately as the international prices were showing downward trend this year.
Staggered import of 1.5 million tons of wheat be made to meet the expected shortfall of 1.5 million tons in the country, the Prime Minister said.
On the current wheat situation, the meeting was informed that the government has set an estimated 5 million wheat procurement target for the year 2008-09.
Out of the set target, a total of 2.121 million tons (42%) has already been procured as compared to 2.054 million tons in the corresponding period last year.
To ensure the availability of “atta” (flour) at an affordable price through Utility Stores Corporation, the Prime Minister also directed for the constitution of a committee to take concrete measures for launching a scheme enabling the poorest of the poor to get subsidized essential food items.
The committee would consist of representatives from the Ministry of Finance, Industries, Social Welfare and NADRA to prepare a database that target only the needy household.
The meeting also took stock of the price situation in the country and was informed that the Sensitive Price Indicator showed increase in prices of 23 items and decrease in 6 items, while prices of 24 items remained unchanged.
The meeting was further informed that the percentage increases in the prices in the last week were much lower than the increase in the prices over the last ten weeks.
Regarding the ban of wheat to the feed industry, the Prime Minister directed that alternative options be sought for the feed industry as it was the second largest industry of the country.
On the export of wheat to Afghanistan, the Prime Minister directed that it should be undertaken on government to government level only.
He said Pakistan will continue to provide wheat and wheat flour to Afghanistan as per past practice.
The ECC also approved the export of 50,000 tons of wheat to Afghanistan to avert food crisis in that country, in addition to their annual requirement.
The meeting also decided to strengthen anti-smuggling measures to check wheat smuggling.
While noting surplus rice production in Pakistan, this seasons, the ECC decided that the export of rice must be undertaken only after meeting the domestic requirements and ensuring the stability of the prices.
The ECC was further informed that Pakistan’s domestic consumption of rice is little over 2 million tons whereas the production of rice this year has gone up to 5.5 million tons.
The ECC authorized MINFAL to undertake negotiations with the well-known American multi-national company “MONSENTO” aimed at introducing technology for genetically modified seed as it is the major reason for reduction of cotton crop in Pakistan from 14 million bales to 11 million bales this year.
On the revenue collection, Chairman FBR informed the meeting that FBR has so far collected Rs. 761 billion by April 30, and expressed the confidence that the revised target of Rs. 990 billion for the current financial year would be met.