The Economic Coordination Committee (ECC) has deferred the matter of Pakistan Agriculture Storage and Services Corporation’s (PASSCO) damaged wheat and has asked the Ministry of National Food Security and Research (MNFS&R) to resolve the matter in consultation with Finance Division.
ECC was briefed by the Ministry of National Food Security and Research on March 10, 2023. ECC was told that the Board of Directors (BoD) of PASSCO in its 145th meeting considered disposing of fully damaged wheat in the first phase that is found unfit for human consumption, reported Business Recorder.
The sale/auction should be conducted in a phased manner, following the recommendations of the committee formed by the MNFS&R. It should be carried out with utmost transparency, overseen by a committee comprising General Managers of PASSCO, who will closely monitor and supervise the entire process. The sorting of partially damaged wheat should be promptly completed, and the sale/auction of such wheat should be given top priority.
PASSCO is planning to auction 44,487 metric tonnes of damaged wheat valued at Rs. 3.285 billion and have sought a differential of Rs. 37.476 million in the Federal budget of 2023-24.
Cabinet approval will be needed before the auction of damaged stocks while any loss incurred during the sale in Phase-I will be placed before the board for consultation. The board also stated the losses will have to be met by the federal government when a certain business is done under specific orders of the federal government.
MNFS&R endorsed PASSCO’s proposal regarding the public auction of disposal of wheat damaged during last year’s floods before the wheat quality declines more while the losses will need to be worked out by PASSCO management to be placed before the board for appropriate recommendations before putting in front of the ECC to compensate for the losses.
The ECC observed that MNFS&R had sought a blanket approval for sale without mentioning the quantity and the financial consequences of the sale and also noted that PASSCO is a private commercial entity and its board must take decisions on the matter itself before coming to the ECC.
After a detailed discussion, the ECC deferred its decision with the direction that the ministry should resolve the issue of the sale of damaged wheat in consultation with the Finance Division.
