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March 27, 2026

Govt to procure 6.5 million tons of wheat at Rs3,500 MSP, committee warns against delays

Procurement expected late April as Sindh farmers sell below support price; potato crisis and detained betel nut consignments also flagged

Monitoring Report

Monitoring Report

March 27, 2026

Govt to procure 6.5 million tons of wheat at Rs3,500 MSP, committee warns against delays

The federal government is set to launch a large-scale wheat procurement drive, targeting 6.5 million tons at a Minimum Support Price (MSP) of Rs3,500 per 40 kilograms, officials told the National Assembly Standing Committee on National Food Security and Research on Thursday.

The Ministry of National Food Security briefed the committee, chaired by Syed Tariq Hussain, that the procurement campaign will begin in the last week of April, after approval of administrative and financial arrangements by the Economic Coordination Committee. 21 private firms have been pre-qualified, with contracts to multiple bidders to ensure transparency and prevent reliance on a single supplier. Each firm must demonstrate financial solvency of Rs1 billion, and the government will cover storage charges.

The panel was warned that delays in procurement could hurt farmers, especially in Sindh, where harvesting starts earlier. Farmers in the province are currently selling wheat at roughly Rs2,700 per 40 kilograms, well below the MSP. The committee stressed that procurement companies must purchase from a broad base of farmers to ensure benefits reach the wider community rather than a limited segment.

The briefing also covered national wheat production, estimated at 29 million tons, of which roughly 40 percent enters the market while the remainder is retained for household use.

Separately, the committee reviewed the ongoing potato crop crisis, noting that nearly 90 percent of the harvest has been completed without meaningful intervention, causing significant financial losses for growers. Officials cited limited progress in export facilitation through Afghanistan and alternative routes, despite previous committee recommendations including transport support, multiple-entry visas, and storage arrangements.

The panel also addressed the prolonged detention of betel nut consignments for nearly three months. The Ministry explained that a notification issued on December 23, 2025 reduced permissible water activity and aflatoxin limits from 30 ppb to 15 ppb, applying only to post-notification transactions. Importers would bear any losses, and consignments linked to pre-policy shipments could be released after fulfilling formalities.

Officials highlighted that the government has invested Rs500 million in two internationally accredited laboratories to expedite testing and ensure timely clearance of consignments. The committee directed a joint task force, comprising the Ministry, Customs, Department of Plant Protection, and Karachi Port Trust, to immediately resolve outstanding issues and release all eligible consignments without delay.

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