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Sindh Government expresses dissatisfaction over offer of Federal Government to export its 4 Lakh ton wheat stock along with subsidy of $ 45 per ton

Karachi, February 05, 2015 (PPI-OT): The Sindh Government has expressed its dissatisfaction over the offer of Federal Government to export its 4 Lakh Ton Wheat stock along with subsidy of $ 45 per ton (PT) and opined that offered volume of relief was too less than the losses to be borne by Sindh due to import of 7 Lakh Ton Wheat by Federal Government. It has also been decided to take the matter of wheat disposal in the Sindh Cabinet within a week time with reference to relief offered by Federal Government and present international wheat market.

The Chief Minister Sindh Syed Qaim Ali Shah while presiding over the meeting regarding early disposal of surplus stock of Wheat, here at CM House Karachi today, directed the 3 members ministerial committee to re-approach to the Federal Government within 3 days and apprise its authorities about the losses to be borne by Sindh Government only because of their wrong decision and added that even Sindh has to bear losses more than Rs. 5 billion despite of accepting the rebate offered by The Federal Government upto $ 45 per ton for exporting 4 Lac MT.

The Chief Minister Sindh said that he himself had apprised the Prime Minister of Pakistan about the Wheat issue being experienced by the Sindh Government during his last visit at Karachi, in which he (latter) agreed to direct the Federal Finance Minister to resolve this problem with consultant of Sindh Government to minimize its losses.

The Chief Minister Sindh directed the already constituted 3 members ministerial committee comprised of Sindh Minister for Finance Syed Murad Ali Shah, Sindh Minister Health Jam Mehtab Dahar and Sindh Minister for Excise and Taxation Gian Chand Israni to re-approach with Federal Government within 3 days to convince and get its offer modified with enhancement of the volume of export at least upto 6 Lac Ton and matching subsidy as offered to Punjab Government.

In the meantime they (the committee) to hold meeting with the exporters to get maximum price of wheat for export. He said that there was no option other than to export the surplus wheat even on discount rates. He said that it was necessary to create the volume for the procurement of wheat of next-crop to protect the growers’ interest.

The Chief Minister Sindh directed the Ministerial Committee that in both cases they submit their reports regarding revised offer of Federal Government if any and wheat export mechanism along with its price that they separately have to work out with exporters to him so that same should be submitted in the cabinet meeting most probably to be called in the next week for taking its decision approval.

He said that since new corps of wheat is about to be harvested as such we cannot afford the delay in disposal of present wheat stock. The Provincial Secretary food Saeed Awan, while briefing the meeting informed that at present Sindh Government has wheat stock upto 990,000 MT available. He said that at least 6 Lac Ton should be exported to create the reasonable space for wheat procurement from coming wheat crop.

He said that Federal Government in the ECC meeting had agreed to export 4 Lac Ton wheat of Sindh with rebate of $ 45 PT against export of 800,000 MT of Punjab at the rebate of $ 55 PT including $ 10 for transportation. He said that even after availing the rebate offered by Federal Government, we have to bear losses more than Rs. 5 billion.

He said that it was because of the import of substandard wheat by Federal Government, which was available at the cheaper rate in the markets of Karachi and rest of Sindh, only 150,642 Ton wheat has been released since Oct, 2014 to last date of February 2015, consequently the stock of surplus wheat up 990,000 MT was still available with Sindh Government whereas the local consumption of the wheat upto March 31, 2015 has been estimated upto 250,000 MT.

The Sindh Minister for Finance Syed Murad Ali Shah said that besides, approaching the Federal Minister for Finance till next Monday, he and other ministers in the committee during this time also to hold meeting with exporters to set out the wheat export modalities in such away so that losses of the Sindh Government be got minimized.

The Sindh Minister for Finance Syed Murad Ali Shah, Sindh Minister Health Jam Mehtab Dahar, Sindh Minister for Excise Gian Chand Israni, Chief Secretary Sindh Sajjad Saleem Hotiyana, Secretary to CM Alumdin Bullo, Secretary food Saeed Awan, Secretary finance Sohail Rajput and other officers attended the meeting.

For more information, contact:
Mr. Allah Bachayo Memon
Press Secretary
Chief Minister House
Tel: +92-21-99202019
Cell: +92-300-3524057 (Ext: 336)

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