Punjab decides to cancel wheat procurement policy.
The food department has announced a departure from its longstanding practice of directly procuring wheat from farmers.
This shift was reported on Saturday, signaling a significant change in the country’s agricultural policy.
New Policy and Legal Implications:
Sources reveal that a new policy framework has been crafted, set to be enacted into law.
Under this law, the food department’s traditional role in wheat procurement will cease to exist.
Also read: DI Khan’s Food Department secretly buying cheap wheat from Punjab, exploiting local farmers
Private Sector Empowerment:
Central to the new policy is the empowerment of the private sector in wheat procurement.
Rather than relying on government intermediaries, farmers will now engage directly with private entities for the sale of their wheat produce.
Notably, the government will retain oversight by fixing wheat prices in accordance with international market trends.
This is Muzaffarabad today. Thousands of Kashmiris violated the old colonial black law section144. They came out from their homes on feet. No transport was used due to wheel jam strike. They are demanding tax free electricity from Mangla dam and subsidy on wheat flour. #Kashmir pic.twitter.com/2aNuSyP9ou
— Hamid Mir حامد میر (@HamidMirPAK) May 10, 2024
“The government will fix the wheat price in view of the international prices of the commodity.”
Uniformity Across Provinces:
In a bid for consistency, all four provinces are expected to agree upon a standardized rate for wheat crops.
This move aims to streamline operations and foster equitable conditions for farmers nationwide.
Two-Year Trial Period:
Recognizing the significance of this transition, authorities have opted for a cautious approach. The new policy will undergo a two-year trial period, allowing for adjustments and assessments of its efficacy.
Financial Ramifications and IMF Imperatives:
Financial considerations loom large in this decision. With an annual burden exceeding 400 billion rupees, the move is poised to alleviate substantial financial strain on the food department.
Notably, sources suggest that pressure from the International Monetary Fund (IMF) has influenced this shift, as part of broader efforts to curtail government expenditures.
Current Stockpile and Market Impact:
As Punjab decides to cancel wheat procurement policy, Punjab’s Finance Minister Mujtaba Shuja ur Rehman indicates that the government still maintains a considerable wheat stockpile.
“We still have 2.3 mln metric tonnes of wheat in store,” minister said.
He contends that the decision has not adversely affected farmers, as they had already sold their produce to middlemen.
“The wheat’s rate has also not drastically dropped and sold at 3,200 to 3,300 rupees per maund,” provincial minister said. “This rate didn’t harm the farmer but definitely their profit has dropped,” finance minister added.
