https://arab.news/ybce5
- Traders have booked 0.7 million metric tons of wheat, with first shipment of 55,000 tons expected on September 17
- Food ministry says the government allowed wheat import to overcome shortage, bring down prices in local market
ISLAMABAD: The government has allowed wheat import to the country’s private sector to overcome the shortage of the commodity in open market, officials said on Friday, while hoping it would help address the hoarding issue and bring down wheat prices in the local market to benefit consumers.
Wheat is a staple food in Pakistan and its shortage can lead to political unrest and protests against governments. The South Asian nation of 241 million is currently facing a shortfall of 2.45 million metric tons of the commodity and has allowed the import to fill the gap amid deteriorating macroeconomic situation.
The country has been importing the grain from Russia and Ukraine for the last three years due to low domestic yield and growing consumption spurred by an increase in population. The country’s total wheat production was recorded at 27.5 million metric tons this year, leaving a gap of over 3 million metric tons to meet the domestic needs.
“The government has allowed the private sector to import the wheat to help overcome the shortage and bring down its prices in the local market,” Dr. Syed Waseem ul Hassan, Food Security Commissioner at the Ministry of National Food Security and Research, told Arab News.
He said this was “the best time” for wheat import since its prices were down in the international market.
“It is a good thing that the private sector has come forward to bridge the gap through import,” he continued.
Traders have finalized 12 deals for the import of 0.7 million metric tons of wheat at $282-295 per metric ton and the first shipment of 55,000 tons is expected to reach Pakistan on September 17, as per the chairman of the Cereal Association of Pakistan, Muzammil Chappal.
“We have come forward to serve the nation at a time when inflation is skyrocketing and it is becoming increasingly difficult for a chunk of our population to have two square meals a day,” he told Arab News.
Chappal said the commodity’s price in the local market was expected to come down by Rs20-25 per kilogram with the arrival of the imported wheat.
“The government has allowed us to import wheat until March 2024 and we have requested the food ministry to issue an official notification in this regard for traders’ confidence,” he said.
“The wheat import will definitely bring stability in flour prices, benefiting consumers at large,” he added.
Food security experts have advised the government to announce wheat support price by mid-October to encourage farmers and ensure timely provision of fertilizers and pesticides to get maximum yield.
“The quality wheat seeds have been developed over the years and are easily available to farmers which give eighty to ninety maunds per acre yield,” Dr. Javed Ahmad, director wheat at Ayub Agricultural Research Institute in Faisalabad, told Arab News. One maund is equal to forty kilograms.
Ahmad said the wheat per acre yield recorded a six percent increase last year due to the quality seed varieties that made agriculture a profitable business for farmers.
“Timely availability of fertilizers and pesticides to farmers on competitive rates can help further improve our wheat yield and get rid of imports to fulfil the domestic needs,” he said, suggesting the government to try to increase the wheat cultivation area from nine million hectares to 10 million hectares to help farmers ensure early harvest of cotton, rice and sugarcane.
“Farmers can ensure balanced use of fertilizers in their wheat crop and proper weed control to get the maximum yield,” he suggested.