Rs2 billion project to construct wheat storages in Sindh delayed

KARACHI - The implementation on a scheme of construction of wheat storages in Sindh through public-private participation has been delayed, as consensus on the scheme has not developed between the stakeholders so far, sources told The Nation.
The idea of proposed scheme to construct wheat storages with public-private was initiated by the Food Department of Sindh government while the total cost of Rs2 billion will be spent on the scheme. Under this scheme, the Food Department will construct the wheat storages in the various districts of province through the financial collaboration of stakeholders such as flour mills and growers.
A senior official of Food Department of Sindh said that this scheme-construction of wheat storages was initially included in ADP of current FY09 but it was not approved for current ADP while, an amount of Rs100 million has been allocated in current financial year 2008-09 as capital component.
In order to assess the feasibility of implementation of this scheme, meetings with the stakeholders including Flour Mills, Sindh Abadgar Board and other leading growers were held, official said, adding, but no workable idea for its implementation has so for achieved.
However, Sindh Abadgar Board has bee requested to visit the silos near Karachi to examine the feasibility of this project on the public private partnership, he said and added that the feasibility report of this scheme was also still awaited.
Official pointed out that the members of the Sindh Assembly also sought the implementation and current status of this project-construction of Storages through Public-Private Participation.
Meanwhile, the members of Sindh Assembly will ask questions in tomorrow's (Monday) sitting as question about this project was made part of order of the day. The minister for Food Department Mir Nadir Ali Khan Magsi will answer the questions of the members in tomorrow's (Monday) sitting of the Assembly as questions relating to Food Department were fixed for this sitting.
According to sources, provincial minister for food department in his written answer stated that during the current wheat year (September 2008-April 2009), the food department has assessed its requirement of wheat to the extent of 1.5 million tons. The provincial department had procured a quantity of 0.506 million tons wheat from the crop of 2008.
To overcome the deficiency, provincial government has requested to federal government for allocation of wheat either from imports or PASSCO/Punjab food department, Minister answered, adding that the Minfal has so far allocated a quantity of 0.573 million tons imported wheat through TCP. Out of which 0.444 m tons wheat has been delivered the Regions-Karachi, Hyderabad, Sukkur, Mirpurkhas and Larkana.
In another written answer, provincial minister for food department said that the government of Sindh fixed issue price of wheat of Rs750/-40kg and Rs1875/-100 kg without bag for current fiscal year while government has not enhanced the issue price of wheat during 2008, however, the process of wheat in open market is fluctuating owing to the supply and demand.
Meanwhile, the questions regarding anticipated wheat crisis in Sindh will raise by the legislators in the Monday's (9th February) sitting of Sindh Assembly.