LAHORE: The Pakistan Poultry Association (PPA), in an interesting development, has asked the provincial government to sell surplus wheat stocks to poultry feed manufacturers at Rs 18 per kilogram, which was purchasable for Rs 23.75 per kilogram in the beginning of the season, Pakistan Today learnt on Monday.
PPA Chairman, Raza Mehmood Khursand, has asked the provincial government to sell one million tonne of surplus wheat to poultry feed manufacturers or request the federal government to waive 25 percent regulatory duty on maize import by feed manufacturers. PPA has called upon the provincial secretary for livestock and dairy development to adress the shortage of grains for poultry feed poultry industry faced by poultry manufacturers while the Punjab government hold massive quantities of surplus wheat stocks.
PPA Chairman, Raza Mahmood Khursand has pointed out that by selling surplus wheat to feed manufacturers the government would get Rs three for every kilogram in revenue which would be a loss in case the stock is exported. However, it is worth mentioning here that the government bought this wheat at Rs 950 per maund (Rs 23.75 per kilogram) from the farmer in the beginning of the season. Another relevant aspect to this multifaceted issue is that the government is selling the wheat to flour mills at Rs 975 per maund (Rs 24.37 per kilogram) for human consumption.
Simple arithmetic indicates that the government would suffer a loss of Rs 5.75 million if it sells wheat to the poultry feed manufacturers at subsidised rates of Rs 18 per kilogram. In addition the government would have to bear the storage and handling cost. Speaking to Pakistan Today, Food Department Secretary, Irfan Elahi, said that though the Punjab had surplus wheat stock of 3.1 million tonnes; it was simply not viable to sell the commodity at a subsidised rate of Rs 18 per kilogram.
He said that the province had a need of three million tonne wheat, while the Food Department had maintained 6.1 million tonne wheat stocks. He said in wake of the flood situation, Economic Coordination Committee (ECC) had already rejected the proposal of wheat export and the provincial government had nothing to do with it. Responding to a query, he said that the provincial government could not bear huge loss by selling wheat to feed millers at the proposed rates.
PPA former Chairman, Abdul Basit, said that poultry industry needed some 5.5 million tonnes of food grains, including wheat, maize, etc. He said the country had total maize production of three million tonnes, which was insufficient as it was consumed by poultry feed manufacturers, the maize industry and domestic consumers. He said that the poultry industry needed some three million tonnes of grains for poultry feed, and if the government would sell surplus wheat to feed millers than the situation could begin to ease.
He said on one hand, maize price was hovering around Rs 1,000 per maund, while simultaneously the country did not have sufficient maize stocks. This had a direct impact on the price of poultry meat. Abdul Basit said that the government should maintain strategic wheat stock and the commodity should not be exported. However, he was of the view that there was no harm in selling wheat to poultry feed manufacturers at subsidised rates, as they were willing to pay the price equivalent to export.
