The Economic Coordination Committee (ECC) of the federal cabinet has approved a request of the Ministry of National Food Security and Research (NFSandR) for the procurement of 1.80 million metric tons (MMT) wheat by Pakistan Agricultural Storage and Services Corporation (PASSCO) with a cash credit limit (CCL) of Rs. 201 billion at a rate of Rs. 3,900 per 40-kg.

The wheat procurement request was approved at the apex committee’s meeting presided over by Finance Minister Ishaq Dar, reported Business Recorder.

The Ministry of National Food Security and Research informed the ECC that PASSCO purchases wheat from Punjab, Sindh, and Balochistan and distributes it to deficit areas and agencies which helps maintain the country’s strategic reserves. Procurement occurs at the announced minimum support price (MSP) in accordance with federal cabinet targets.

The meeting was apprised that the estimated release from PASSCO’s stock is 638,848 MTs, rendering a carry-forward stock of 1,325,265 MTs at the start of the new food year.

The Food Ministry proposed the ECC to assign PASSCO a wheat procurement target of 1.80 MMTs with a tentative CCL of Rs. 201 billion at a procurement price mentioned above, a minimum level of carry-forward stocks, and the current pricing trend in the local wheat market.

The ECC instructed the MNFSandR to form a committee to examine proper wheat usage, and wheat storage mechanisms/silos in the country, and present its findings to the ECC within 15 days.

Source: Pro Pakistani