Govt to check rise in wheat, flour prices

ISLAMABAD: The government on Wednesday vowed to check rise in prices of wheat and flour that is estimated to fall short of the country’s demand this year, necessitating import of the staple food.

The commitment was made in a meeting attended in-person and online by ministers and advisers from finance, commerce and food ministries and provincial representatives. The meeting reviewed the wheat and flour situation in the country and causes for recent increase in wheat and flour prices, especially in Khyber Pakhtunkhwa and Balochistan.

The ministry of national food security and research was asked to prepare and bring up a summary in the light of discussion on the subject to the Economic Coordination Committee of the cabinet.

The meeting was told that the matter would be discussed at the cabinet level for appropriate decisions to ensure wheat and flour at a reasonable price across the country throughout the year.

A market survey by The News late last month found that the country needs to import 100,000 to 200,000 tons of wheat every month till April next year to check price hike in the domestic market as local production is not sufficient to stabilise grain supplies.

Strategic reserves or buffer stocks of one million tons are additionally required to control price hike, keeping in view the demand-supply gap. Wheat production was estimated to run short of about one million tons and may be around 25.7 to 26 million tons this year. There is about 0.7 to 1.0 million tons less output in Punjab alone if compared with the provincial output target. The meeting discussed various issues with regard to increase in the prices of wheat and flour were highlighted and it was resolved that the government would take all possible measures to control the prices of wheat and overcome shortages.

“Import of wheat is an indispensable option in the given circumstances,” said a mill official. “At least 0.5 million tons should be imported.”

The government approved the minimum support price at Rs1,400/40 kilograms. It set wheat procurement target at 1.8 million tons for Pakistan Agricultural Storage and Services Corporation, 4.5 million tons (Punjab), 1.4 million tons (Sindh), 1 million tons (Balochistan) and 0.45 million tons (Kyhbyer Pakhtunkhwa). Approximately 1,162 wheat purchase centres have been established throughout the country and district administration in all provinces were ordered to take strong legal action in order to curb the hoarding.

However, wheat procurement target was largely missed till the mid of May when the buying drive usually comes to end.