Punjab seeks 1 million tonnes, Sindh up to 700,000 tonnes from federal reserves as govt weighs wheat imports

Punjab has sought one million tonnes of wheat from federal reserves, while Sindh has requested at least 220,000 tonnes, as the federal and provincial governments move to contain rising wheat and flour prices, The Express Tribune reported. 

Federal and provincial representatives met on Monday for the second time in five days, with another meeting expected within 24 hours.

The meeting, chaired by Economic Affairs Minister Ahad Cheema, considered wheat imports but deferred a decision until all four provinces submit their final requirements in writing.

The government may need to import between 500,000 and one million tonnes if allocations to the provinces exhaust the 1.7 million tonnes currently held by the Pakistan Agriculture Storage and Services Corporation, according to a senior government official.

Punjab requested one million tonnes from PASSCO. Sindh sought between 220,000 and 700,000 tonnes from Punjab and also asked it to ease border controls to facilitate wheat movement.

Punjab declined the request to relax the restrictions, citing its own supply management difficulties.

Khyber-Pakhtunkhwa sought around 100,000 tonnes for the public sector and another 700,000 tonnes for private-sector requirements. The province also requested locally produced wheat.

The shortages have emerged after the wheat support price was withdrawn two years ago under an IMF condition without an alternative mechanism, while Punjab and Sindh procured substantially less wheat from farmers this year.

Punjab had planned to procure three million tonnes but purchased only 480,000 tonnes. Sindh procured slightly more than 200,000 tonnes.

Officials also said Punjab had been unable to trace around four million tonnes of wheat believed to have been hoarded.

Pakistan produced 29.78 million tonnes of wheat this year and carried about two million tonnes from the previous year. The Ministry of National Food Security and Research estimates total requirements at 31.66 million tonnes, around 125,000 tonnes below available supplies.

Despite the official supply position, wheat and flour prices rose by about 6%, prompting concerns about market availability.

Between June 11 and July 9, wheat prices in Punjab increased by Rs235 to Rs4,423 per 40kg. Prices in Sindh rose by Rs437 to Rs4,625.

In Khyber-Pakhtunkhwa, wheat increased from Rs4,947 to Rs5,100 per 40kg, while prices in Balochistan rose from Rs4,760 to Rs4,800.

Flour prices reached Rs142 per kg in Rawalpindi, Islamabad, Peshawar and Karachi, while the commodity was available at Rs130 per kg in Gujranwala.

Muzzammil Aslam, finance adviser to the K-P government, said provincial reserves were critically low and argued that imports were the only viable option to reduce prices.

However, a Ministry of Economic Affairs handout said provincial representatives reported that the wheat market remained stable, with no immediate shortage or crisis. It added that action against hoarding and market manipulation was continuing.

Cheema said any import decision would follow a full assessment of domestic market conditions and would protect the interests of local farmers and growers.

He said wheat would be released to provinces under memorandums of understanding signed with PASSCO and that additional supplies would be made available when required.

Federal Minister for National Food Security Rana Tanveer Hussain said PASSCO was supporting provincial governments to maintain supplies and manage stocks.