Govt to import 1m tonnes of wheat

Decides to release stock at PASSCO to provinces

ISLAMABAD:

The federal government has decided to release wheat stocks available with the Pakistan Agricultural Storage and Services Corporation (Passco) to the provinces according to their requirements to ensure the supply of affordable and quality wheat to consumers.

According to sources, the decision was made after detailed consultations between the federal government and all provinces on wheat availability, prices and supply. By mutual consensus, it was decided that Passco's existing wheat stocks would be released immediately in line with provincial needs.

The government also decided to import one million tonnes of wheat on an urgent basis, as the provinces' combined requirement exceeds Passco's available reserves. The imported wheat is aimed at meeting the country's overall demand and maintaining stability in the domestic market.

On Thursday, officials of a farmers' alliance warned that Pakistan's wheat crisis was worsening due to flawed agricultural policies, weak planning and administrative failures. They cautioned that unless immediate corrective measures are

In a joint statement, Markazi Kisan League (MKL) Chairman Chaudhry Zulfiqar Ali Olakh and President Muhammad Ashfaq Warraich cautioned that unless immediate corrective measures were taken, wheat and flour prices were likely to rise further, placing a greater burden on consumers.

They said the current crisis stemmed largely from the abolition of the wheat support price mechanism under International Monetary Fund (IMF)-related reforms and the failure of provincial governments to procure sufficient wheat from farmers during the current season.

They noted that Punjab procured only 480,000 tonnes against its target of three million tonnes, while Sindh purchased around 200,000 tonnes, leaving national wheat reserves under severe pressure.

They stated that Pakistan spent more than $1 billion last year importing nearly 3.5 million tonnes of wheat, yet the country still faces an estimated 3.5 million-tonne shortfall.

If the present situation continues, they warned, additional imports will become unavoidable, placing further strain on the national economy and foreign exchange reserves.

The MKL leaders said the party had repeatedly warned the government months ago about the possibility of a wheat shortage, but the relevant authorities failed to take timely action.

As a result, wheat prices have increased significantly over the past month. They cautioned that prices could rise to Rs6,000 per maund, making flour and bread increasingly unaffordable for ordinary citizens.

Punjab has demanded one million tonnes from the federal government, while Sindh has asked for a minimum 220,000 tonnes from federal stocks currently available in godowns in the province, officials who attended the meeting told The Express Tribune.

The shortages, particularly in Punjab and Sindh–the country's food baskets–are rooted in two decisions: ending the wheat support price two years ago under an IMF condition without creating a credible alternative arrangement, and the failure of both provinces to procure wheat from farmers this year.