wheat prices Pakistan

Punjab and Sindh have declined to procure imported wheat despite the federal government’s decision to bring in one million metric tonnes to address rising prices and strengthen strategic reserves. The two provinces are instead seeking additional supplies from federal stocks after falling significantly short of their local wheat procurement targets. Punjab Reverses Its Wheat Import Commitment Punjab had initially committed to purchasing one million tonnes of imported wheat but later reduced its requirement to 800,000 tonnes. During a meeting chaired by National Food Security Minister Rana Tanveer Hussain, the Punjab representative stated that the province no longer required imported wheat. The minister directed that the position be formally recorded so the province could not later hold the federal government responsible for any shortage or price increase. Punjab has already received 800,000 tonnes from federal PASSCO stocks, but 533,000 tonnes of that allocation are still awaiting collection. The province also procured only 500,000 tonnes directly from farmers against a target of three million tonnes. Sindh Also Shows Reluctance To Accept Imports Sindh had previously requested 720,000 tonnes of wheat, including 500,000 tonnes from imports. However, during a steering committee meeting chaired by Deputy Prime Minister Ishaq Dar, the province also expressed reluctance to take the imported grain. Khyber Pakhtunkhwa, meanwhile, maintained its demand for 200,000 tonnes of imported wheat along with another 200,000 tonnes from local stocks. A KP representative criticised Punjab’s change in position, arguing that the province had earlier reported a shortage that contributed to higher prices and affected the availability of wheat in other provinces. Federal Government Maintains 1 Million-Tonne Import Plan Despite the provincial reservations, the federal steering committee reaffirmed its decision to import one million tonnes of wheat. The government says the imports are necessary to meet domestic requirements, ease price pressures and maintain adequate strategic reserves. Officials noted that existing federal stocks are insufficient to satisfy the demands of all provinces. Consequently, even if some provinces prefer locally procured wheat, the federal government intends to proceed with imports to safeguard national reserves. Flour Prices Rise Sharply The wheat supply dispute comes as consumers face a substantial increase in flour prices. According to the Pakistan Bureau of Statistics, the price of wheat flour has risen 77.5 percent year-on-year to Rs132.50 per kilogram from Rs75. The sharp increase has intensified pressure on the government to ensure adequate wheat availability and prevent further escalation in food prices. Government Finalises Wheat Supply Mechanism Under the proposed arrangement, the federal government has allocated one million tonnes of PASSCO wheat stocks among the provinces on a proportional basis. Punjab is set to receive the largest allocation, followed by Sindh, Khyber Pakhtunkhwa and Balochistan. A draft tripartite agreement identifies the Ministry of National Food Security as the coordinating authority without financial liability. The Trading Corporation of Pakistan will handle the import process without assuming financial liability, while the provinces will be responsible for providing payment security and firm commitments. Imported wheat will be supplied at Rs4,150 per 40 kilograms, which is Rs650 higher than the farmer support price. Any decision regarding duty exemptions will be taken by Prime Minister Shehbaz Sharif. Procurement Shortfalls Fuel Wheat Crisis Provincial procurement performance has emerged as a major concern behind the current wheat situation. Punjab’s purchase of only 500,000 tonnes against a target of three million tonnes has left the province heavily dependent on federal reserves. The reluctance of Punjab and Sindh to accept imported wheat further complicates the federal government’s effort to manage supplies and stabilise prices. Officials have stressed that the provinces must provide written positions specifying whether they accept or reject imported wheat before the government proceeds with the next stage of the arrangement. Wheat Import Decision Faces Provincial Resistance The federal government now faces the challenge of balancing provincial preferences with the need to maintain national wheat reserves. While Punjab and Sindh are reluctant to procure costly imported wheat, the Centre maintains that imports are necessary because domestic procurement has fallen short of targets and federal reserves alone cannot meet future requirements. The outcome will depend on how quickly provinces finalise their wheat requirements and whether the federal import programme can ease supply pressures without placing additional financial strain on provincial governments.