ECC allows TCP to import 200,000 tonnes wheat

ISLAMABAD: The Economic Coordination Committee (ECC) has permitted the Trading Corporation of Pakistan (TCP) to import 200,000 tonnes wheat, following the import of 500,000 tonnes by the private sector. 

An ECC meeting chaired by Adviser to Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh allowed the TCP to import of 200,000 tonnes of wheat for Pakistan Agricultural Storage and Services Corporation (PASSCO).

Federal Secretary Ministry of National Food Security & Research Omar Hamid Khan informed that 500,000 tonnes of wheat were also being imported by the private sector and that the first shipment was scheduled to arrive on 26th August.

The government has already allowed TCP to import 1.5 million tonnes of wheat through an open international bidding process in order to meet the identified demand of 0.70 million tonnes of wheat by Punjab, 0.30 million tonnes of wheat by Khyber Pakhtunkhwa and 0.5 million tonnes required to replenish the strategic reserves of PASSCO. 

During the meeting, it was observed that the arrival of 700,000 tonnes of wheat in the next couple of months would help defuse price volatility, overcome scarcity and discourage hoarding of the essential commodity across the country. 

It was also observed that wheat stocks to the tune of 26.05 million tonnes, including 25.457 million tonnes from fresh wheat and 0.602 million from the carry forward stocks, were currently available in the country, reflecting a shortfall of 1.411 million tonnes. 

The availability of wheat stocks in the public sector was at 6.32 million tonnes compared to 7.55 million tonnes during the corresponding period of 2019. 

In the meantime, the ECC also took up a plan for the import of sugar through private importers in wake of the fast depleting stocks of sugar, which currently stood at 1.2 million tonnes, were likely to exhaust by early November 2020.

The meeting decided to lessen the levy of sales tax and other duties on the import of sugar by the private importers so as to keep the landed cost at the lowest possible level and to make sure a fair and affordable price to people. 

According to Industry and Production Minister Hammad Azhar, the ECC has ratified the proposal to reduce and remove the incidence of taxes on sugar at the import stage. “This will facilitate private sector importers, improve domestic stocks and stabilize prices.” 

Furthermore, the ECC took up the issue of a waiver of demurrage charges on Afghan Transit Trade cargo stranded at Karachi ports. The committee asked the Ministry of Maritime Affairs to discuss the issue with port officials and terminal operators for its amicable resolution. 

The Ministry of Maritimes Affairs has proposed to waive demurrage charges, worth Rs397 million, of around 24,000 standard containers. These have been struck from March 24 to July 21, 2020, due to the corona-led closure of the border. The Pakistan-Afghanistan Parliamentary Group had proposed in its second meeting to waive off these charges.