Hope and faith
Prior to this decision, the federal government would purchase a bag of 100kg wheat for Rs3,200 as part of G-B’s quota. Transportation costs would increase the cost of each bag to Rs5,400. The region receives 1.5 million bags annually from Punjab through Pakistan Agriculture Storage and Services Corporation (Passco). The wheat was subsequently sold at subsidised rates for nearly 1.5 million people in G-B.
The government hopes the local yield of wheat will meet the needs of half of the region’s population once it starts purchasing the crop from local farmers. An agricultural project has also been approved for the region.
“We have ensured the region is included in a scheme under which urea is provided to farmers on subsidised rates,” Manzoor said. “This will facilitate local farmers. Previously, G-B was not included in the plan.”
The federal government has been giving special subsidy on wheat supply to G-B since the 1970s, which was introduced by the then PPP government and continued for decades.
Weighing options
The G-B government has stopped the supply of wheat to a private company based in Punjab that has been offering grinding services to it for a long time. It has instead decided to hire grinding services from another mill. The move will help save over Rs20 million from the region’s economy.
“The Punjab-based firm offered its services at Rs175 per bag while the same weight of bag can be ground at Rs120 per bag,” Manzoor said. “The government will now be able to save over Rs10 million.”
According to Manzoor, the decision was taken after rates from both companies were compared.
“Since the other mill was charging lower rates, we decided to opt for
it,” he added.
Published in The Express Tribune, October 2nd, 2015.