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Upcoming season: government proposed to buy wheat on deferred payment




  • Agri Forum Pakistan (AFP) has proposed the government to buy wheat from the growers in the coming procurement season on deferred payment instead of borrowing money from the commercial banks on higher interest rates. AFP Chairman Dr Muhammad Ibrahim Mughal said that every year government arranges money from the commercial banks on higher interest rates to pay wheat growers during the procurement drive. 

    However, he proposed, the government should pay suitable profit to the growers by procuring the commodity on deferred payments. Mughal said that in the coming procurement season Punjab Food Department should ensure buying of 5 million tons of wheat, Sindh Food Department 1.5 million tons and two million tons of procurement should be ensured by the Pakistan Agricultural Storage and Services Corporation (PASSCO). 

    He said these departments should not take a loan of Rs 150 billion from banks on higher interest rates rather develop a mechanism to payback to growers after three months, six months and eight months deferred payment. He said that the AFP had already done its homework on this proposal by virtue of which, Food departments had to pay much less amount than what they used to pay as interest. He said that growers will have profit over and above Rs 1200 per maund of support price which will give them financial relief too. AFP chairman claimed that this fool proof system will save the government from interest and growers could earn handsome profit. 

    Copyright Business Recorder, 2014

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