In a recent briefing to the Senate Standing Committee on National Food Security and Research, senior officials from the Ministry of National Food Security and Research revealed that wheat production is expected to decline in the upcoming rabi season. The anticipated drop is attributed to the lower market price of wheat, which could lead to reduced yields.
The committee meeting, chaired by Syed Masroor Ahsan, also addressed the ongoing issue of cess recovery from the textile industry. Officials reported that approximately Rs. 3 billion in cess arrears are owed by textile industries. Despite 121 textile industries filing 65 cases against the dues, 63 cases were resolved in favor of the Pakistan Central Cotton Committee (PCCC), with two cases still pending in the Peshawar High Court. In the fiscal year 2023-24, the Cotton Commission collected around Rs. 293 million in cess, with 184 industries complying and 157 not responding.
The committee was briefed on the Wheat Board’s role, which includes ensuring the availability of agricultural inputs and evaluating wheat production costs in collaboration with provincial authorities. The board, consisting of 27 members, was established following the Senate Standing Committee’s recommendations.
Aimal Wali Khan inquired about the PCCC’s role and its governing rules. The PCCC, established under an act of Parliament, is chaired by the Federal Minister and includes members from APTMA, provincial agriculture secretaries, and cotton growers from all provinces. The committee deferred further discussion due to a lack of detailed information on the cess owed by textile industries.
Additionally, Ahsan emphasized the need to address pension issues for employees of the Pakistan Cotton Standards Institute, urging prompt disbursement of pensions to those who have dedicated their careers to the institution.
The committee also received a briefing on the Pakistan Agricultural Storage and Services Corporation (PASSCO) from its Managing Director, Sarfaraz Durrani. PASSCO’s primary function is to maintain strategic wheat reserves to ensure national food security. It supports farmers by providing a market-stabilizing support price and finances its operations through loans from six commercial banks, which hold a 75% share in PASSCO, with the remaining 25% owned by the Government of Pakistan. PASSCO has not received government budgetary grants and is owed approximately Rs. 194.746 million by various provincial food departments, the Government of Pakistan, and the Pakistan Army.
In efforts to improve performance, PASSCO has taken disciplinary action against 249 employees, including two senior general managers, for corruption. The committee has decided to form a sub-committee, led by Senator Aimal Wali Khan, to investigate a recent scandal involving wheat imports.
