ISLAMABAD, Sept 15: Ministries are divided on the proposed move of the government allowing the state-owned Trading Corporation of Pakistan (TCP) to purchase rice from growers for export.A senior official told Dawn on Monday that the ministry of food, agriculture and livestock (Minfal) has submitted a summary to the finance ministry to protect the interest of the growers as price of rice has substantially declined in international market.

Due to this decline in international market, the rice price in domestic market also witnessed some marginal decline, which is expected to give some relief to the consumers if the government did not intervene to protect the interest of big growers.

The official said that the other ministries including commerce are opposing the Minfal move as what they said that government should not intervene to regulate the market at the cost of the consumers.

The price of rice had doubled last year in the domestic market on the back of substantial increase in international market due to reduction in the yields. However, the growers and the exporters were opposing the government move to arrest increase in the price of rice at that time.

This issue was raised during the meeting of the Economy Monitoring Committee (EMC) headed by its chairman Finance Minister Syed Naveed Qamar here on Monday. An official statement said that Minfal briefed EMC regarding TCP’s proposed procurement of basmati rice to stabilise prices. However, finance minister directed Minfal to hold meetings with Rice Exporters Association of Pakistan (Reap) and other stakeholders along with ministry of commerce to bring appropriate proposals in the next meeting.

Mr Qamar also advised Minfal to come up with comprehensive assessment of wheat demand and import needs in the next EMC meeting. Earlier, EMC allowed Minfal to sale appropriate stocks of food grains available with Passco as there was no additional demand from Utility Stores Corporation (USC).

Ministry of commerce briefed EMC on unloading and transportation of 1, 150,000 tons of imported wheat, adding that the matter needs referral to ECC for a decision on its transportation plan from Karachi/Gwadar up North.

The EMC directed ministry of commerce to submit a comprehensive proposal to ECC for approval on issues of imported wheat’s unloading at country’s ports.

The Minfal informed EMC that presently they had adequate wheat stock position that is being recouped through domestic procurement and external imports from US and Canada. However, Minfal was advised to complete its homework for import of white wheat from Canada on deferred payment.

The Minfal briefed the EMC about modalities of wheat import from US under PL-480 scheme, which has been finalised and an agreement shall be signed before September 15, 2008, adding that shipment will start in October 2008.

Minfal further informed that purchase of wheat on deferred payments under GSM scheme is under progress.

The finance minister directed Minfal to ensure adequate supply of white wheat in NWFP and Balochistan, adding that Minfal and ministry of industries should ensure availability of mixed flour at Utility Stores Corporation (USC) in other provinces.

The meeting observed that Minfal should expedite efforts for purchase of urea from Saudi Arabia and Kuwait, advising that necessary paper work related to Saudi facility be completed at the earliest.

It was agreed that on the basis of forecasts for the months of November and December, the demand of urea in terms of domestic production and import is likely to go up.

Earlier, EMC directed the especially constituted committee on natural gas allocation and management policies to formulate a comprehensive forward looking fuel policy in the next 3-4 weeks. The recommendations once finalised and approved by EMC shall be taken to ECC for approval.