POLICY Food Department was established during World War-II for supply of Atta, Sugar and other commodities. Statutory Rationing of wheat, atta & sugar was made. Wheat was procured under monopoly scheme by Food Department and supplied to Flour Mills for grinding. POLICY AFTER INDEPENDENCE Monopoly procurement of wheat and Statutory Rationing System was inherited. Wheat was to be distributed to a district on population basis and further distributed to mills on capacity basis. Wheat and wheat products both were the property of the government. Flour Mills acted as agents for grinding and were paid only grinding charges. Private trade of wheat and atta was prohibited. The atta was supplied to the consumers through Ration Depots controlled by Food Department.   ABOLITION OF STATUTORY RATIONING SYSTEM The trade of wheat and atta was liberalized in 1969. Flour Mills were allowed to purchase wheat from the open market. However some selected Flour Mills continued grinding on Government account for distribution through ration depots. DURING NATIONLIZATION PERIOD All the Flour Mills were nationalized in 1976 and were run by Sindh Flour Milling Corporation. Selected Flour Mills were supplied wheat by the Food Department for Government Grinding for supply of atta to the consumers through ration depots. Grinding charges were paid to such Mills. The remaining Flour Mills procured wheat from open market. AFTER DE-NATIONALIZATION After denationalization in 1978, the Flour Mills were allowed to purchase wheat either from the open market or from the Food Department. Wheat was supplied to flour mills at subsidized rates. Selected Flour Mills were supplied wheat on further lesser rates for Government grinding for supply of Atta to the consumers through Ration Depots. PROBLEMS OF RATIONING SYSTEM There were common complaints regarding illegal sale of wheat by Flour Mills and Bogus Ration Depots. Besides the system was generally flawed   AFTER ABOLITION OF RATIONING SYSTEM Rationing system was abolished in 1978. Issuance of wheat in unlimited quantity Ex- Government godowns at Rs. 2.00 per Kg without bag was allowed. Minimum quantity of lifting was 10 tons. Provincial Government fixed rate of Atta Rs. 2.20 per Kg. For a short period the wheat equivalent to 10 hours milling capacity was issued. In August 1990, the wheat was released according to capacity and requirements of the Flour Mills. In 1992 all enlisted Flour Mills were allowed to lift wheat as per their demand but subject to 24 hours approved milling capacity. Releases of wheat to all the Flour Mills in Sindh was started on body basis as per quota fixed from time to time. In year 1996 wheat to the Flour mills was released according to 8 hours grinding capacity. During the year 1997 the policy of liberal releases of wheat to all the enlisted Flour Mills in accordance with their milling capacity was adopted. LIBERAL RELEASES During the year 2000, the country witnessed a bumper crop of wheat. Resultantly, the policy of liberal releases to flour millers as well as traders was adopted to dispose of the huge stocks lying with the department. EXISTING ISSUANCE POLICY Issuance of wheat in the province is determined periodically in view of market situation and the reserves available with the department. Determined quantity is issued on grinding capacity/body basis to all the functional flour mills of Sindh Upper ceiling of price of atta is fixed to ensure the availability of atta at reduced rates. PLAN OF ACTION, STRATEGY & POLICY GUIDE-LINES 1. The Sindh Food Department owns grain godowns of 709,120 tonnes capacity, majority (including bins) of which were constructed prior to independence period or during 50s to 80s. These godowns require excessive repairs and maintenance. The working storage capacity is about 6.5 lac tonnes at the moment. 2. Since eighties, the population of Sindh Province has increased tremendously and according to latest census, it has reached 30 million figures. The consumption of wheat has increased proportionately to around 3.5 to 3.7 million tonnes annually. 3. The Food Department is handling a quantity of 0.7 to 0.9 million tonnes annually for which matching storage accommodation is required. After eighties no storage accommodation was built in urban areas of Karachi and Hyderabad or in the wheat growing areas like Sanghar, Nawabshah, Naushahro Feroze, Khairpur & Ghotki Districts. 4. The storage requirement was aggravated further, when the department handled a huge quantity of 1.0 million tonnes of wheat, allocated from Punjab during 2000. The department was thus compelled to hire RECP godowns at Karachi at the rent of Rs. 6 million per month. 5. In order to create more storage accommodation, this department has taken following steps: - a. The grain godowns of Binishell type of 105000 tonnes capacity constructed by NLC during 80s at Bolhari, District Dadu were rehabilitated through provincial ADP at a cost of Rs. 14.90 million. b. The Federal Government was approached for the construction of additional storage capacity of 525,000 tonnes at Karachi, Hyderabad, Sanghar, Bolhari, Sukkur and Ghotki Districts. The proposal for financial assistance from Federal Government, however, did not materialize. c. The Ministries of Food & Agriculture and Commerce, Govt. of Pakistan were approached for handing over the possession of abandoned RECP godowns at Karachi to Sindh Food Department. The request was turned down. d. The SGG.I, II & III, with total capacity of 149500 at Landhi, Karachi are being rehabilitated through Prov. ADP 2005-06, with an estimated cost of Rs. 28.68 million. e. The Food department had chalked out the comprehensive ten years plan (2003-2013) for the rehabilitation of all godowns at an estimated cost of Rs. 400 million. A summary to Governor, Sindh was submitted through Planning & Development and Finance Department, but with no out come. f. The Federal Government under ASPL-II, with the assistance of Asian development Bank, has under taken a comprehensive plan for reorganization of Food department by 2009 in order to bring it, as a profit oriented department to meet the future challenges and demands. In this behalf, the consultants are being appointed to carry out the study of the present system of Food department and make recommendation for reorganization of Food department, keeping in view: 1) New role of Food department including directorate, optimizing the efficiency, with implementation of plan compensation package for redundant staff. 2) Legal structure and implementation. 3) Phasing out subsidy 4) Strategic formulation for procurement and management of stocks. 5) Financial and Accounting system.