Provinces demand 2.2MMT of wheat

Provinces have demanded over 2.2 million metric tonnes of wheat to arrest prices of wheat flour that soared up to Rs150 per kilogramme, as the Centre plans to import roughly 1 million metric tonnes of the commodity through the Trading Corporation of Pakistan (TCP). Official wheat flour prices have already jumped on average by 74% to Rs129 per kilogramme as of last Friday compared to a year ago, according to the Pakistan Bureau of Statistics. The rates were as high as Rs150 per kilogramme in Peshawar, according to the office of the Rationing Controller of the provincial government.

According to a decision taken in the federal Wheat Board meeting, the provincial governments would provide back-to-back Letters of Credit (LCs) against the imports. In case of any shortfall in payments against the imported wheat, the federal government would deduct money from their shares in the National Finance Commission award. These decisions were taken on Monday during the board meeting, which was presided over by the Federal Minister for National Food Security Rana Tanveer Hussain, with four provincial governments in attendance.

The board reviewed the prevailing wheat supply situation and provincial requirements to ensure food security and market stability. The officials said four provincial governments placed their final demands for the requirement of wheat during the board meeting to fill the supply gaps. The shortages were pushing prices high despite officially claimed production of 29.7 million metric tonnes of wheat and another 2 million tonnes of stocks.

The food ministry believes that total availability was still slightly higher than requirements, yet wheat and flour prices were constantly on the rise despite the announcement to import the commodity. The officials said the government of Punjab placed a demand for one million metric tonnes of wheat, to be supplied either from stocks held by the Pakistan Agriculture Services and Storage Corporation (PASSCO) or by importing the commodity. Punjab produced nearly 22 million metric tonnes of wheat this year but badly failed to meet the 3 million metric tonnes procurement target, contributing to the national wheat ma…