April 26, 2011
 

Pakistan likely to lag behind wheat crop target

Pakistani government's likelihood of attaining 24.2 million tonnes of wheat output instead of the initial target of 25 million tonnes shows a 3.2% shortfall from the goal, according to the media.

The expected wheat crop of 24.2 million tonnes was obtained over sowing areas of 8.89 million hectors against the target of 9.045 million hectors set for the year 2010-11. According to the estimates, Punjab province produced 18.2 million tonnes of wheat crop against the target of 19.205 million tonnes, showing 5.23% shortfall. The Sindh province's expected wheat crop is 4.2 million against its production target of 3.682 million tonnes, showing 14% more production over its target set for the year 2010-11, the sources maintained.

Khyber Pakhtunkhwa (KPK) expected wheat crop is 1.1 million tonnes against its target of 1.21 million tonnes, showing a 9% shortfall while Balochistan anticipated a wheat crop of 720,000 tonnes against the target of 903,000 tonnes, showing a 20% shortfall.

The wheat production target of 25 million tonnes for 2010-11 was set in the Federal Committee on Agriculture (FCA) meeting held on Nov 1, 2010, for ongoing Rabi season, the sources maintained. The harvesting of wheat crop both in Sindh and Punjab has already started and food department is procuring wheat at the prescribed official rate of PKR950 (US$11.24) per 40kg. The government had decided to procure 6.57 million tonnes of wheat crop during 2011. According to the plan, Pakistan Agricultural Storage & Supplies Corporation (PASSCO) has to procure 1.3 million tonnes, Punjab 3.5 million tonnes, Sindh 1.3 million tonnes, KPK 400,000 tones and Balochistan 700,000 tonnes of wheat crop.

The government made a record increase in the support price of wheat to PKR950 (US$11.24) per 40kg for year 2008-09 against PKR425 (US$5.03) per 40kg in the preceding year. The support price resulted in record production of about 24 million tonnes of wheat during 2008-09 and 23.3 million tonnes during 2009-10, making the country self-sufficient.

Officials in the Ministry of Food and Agriculture said under Rabi Assistance Plan 2010, PKR4.101 billion (US$48.5 million) was distributed among the provinces including AJK and GB for rehabilitation of their land affected by 2010 devastated flood.

The timely US contribution of US$62 million allowed the Food and Agriculture Organisation (FAO) to distribute wheat seeds to flood stricken areas of Pakistan.

Through the US Agency for International Development (USAID), the American people provided FAO with US$21 million for Khyber Pakhtunkhwa, US$25 million for Punjab, and US$16 million for Balochistan. The assistance also included fertiliser, and cash-for-work programmes to clear irrigation canals blocked by silt from the floods. Apart from USAID, FAO, a number of non-government organisation also provided different packages to farmers during sowing wheat season, the officials added. Keeping in view of such packages, getting 24.2 million tonnes of wheat crop is not sufficient and it might cross the target of 25 million tonnees.

Officials in the Ministry of Food and Agriculture said that country's total wheat requirement is 24 million tonnes for the year 2011. Last year, the wheat production recorded 23.3 million tonnes while the carry-forward stock was 4.2 million tonnes, which makes total availability of 27.5 million tonnes. Due to surplus quantity of wheat and better price in the international market, the government had decided to export three million tonnes of wheat during 2010-11 with about one million tonnes exported through private sector. The private sector was given wheat from government stock at the rate of about PKR1000 (US$11.84) per 40kg and it was exported to Bangladesh, Malaysia, Yemen and Vietnam.

According to rough estimation, the officials claimed that currently, wheat price at international market is about PKR30940/tonne (US$366.18) while the government purchased prices is PKR23750/tonne (US$281.08) at PKR950 (US$11.24) per 50kg value.