Country has enough wheat stock to meet demand by May 2024: food ministry

ISLAMABAD: With 6.93 million tonnes of wheat stockpiling in the government warehouses in addition to the arrival of over a million tonnes of imported wheat in coming days, the country has ample stock of wheat to meet its demand until May next year, the next harvesting season.

According to the Federal Ministry of Food Security and Research statistics, Pakistan Agricultural Storage & Services Corporation (PASSCO) holds 1.78 million tonnes of wheat, Punjab, 4.021 million tonnes, Sindh, 0.817 million tonnes, Khyber Pakhtunkhwa, 0.227 million tonnes and Balochistan, 0.089 million tonnes.

The food ministry said the stock is sufficient to meet the nation’s wheat requirement until May 2024, coinciding with the new crop harvest.

Besides, the private sector has started importing wheat. It has already secured over 700,000 tonnes, while an additional 1.2 million tonnes of imports in the pipeline. With adequate supply of wheat, the prices have dropped from Rs4,800/40kg to Rs4,300-4,400/40kg and more reductions are expected, easing financial burdens for the public. Captain (retd) Muhammad Mahmood, Federal Secretary of Food Security and Research, commented, “Approximately 50 percent of the production is retained at the rural level, with the remaining 50 percent traded among the public sector, flour mills, and other traders. The public sector caters to civic requirements for about six to seven months from September to March and April. Daily consumption stands at approximately 79,000 tonnes, with 45,000 tonnes supplied by the public sector and the remainder by the private sector.”

However, the private sector imported at a significantly lower cost, approximately Rs3,700 per 40 kg, reducing demand from the public sector. As a result, Punjab is yet to announce its release policy, while Sindh’s cabinet has set a release price of Rs4,200/40 kg, commencing from November 10, 2023. In the absence of release policies from Punjab and Sindh, concerns are growing about potential surplus stocks at the season’s end. PASSCO also faces this challenge, estimating carry-forward stocks at approximately 0.11 million tonnes, but slow releases suggest a higher actual figure. The country’s commodity prices are witnessing a significant drop, reflecting demand and supply dynamics. Market reports, corroborated by Food Departments, indicate that imported wheat cost Rs95/kg as compared to Rs105/kg of the local wheat, which was Rs141/kg at the beginning of September 2023. Further imports by both the public and private sectors are expected to drive local market prices even lower, benefiting consumers nationwide.