The Government of Punjab has finally woken up from slumber and is looking to allow both public and private sector the import of wheat.
An emergency meeting by the Secretary of Food had been called this morning to review the matter.
Last month, wheat domestic markets jumped by up to Rs. 800 per 40 kg after taking a dip to below Rs. 3,800 at the beginning of last month. Market sources claim that if the import is announced, it may result in a floor price decrease of Rs. 400 per 20 kg bag.
Wheat prices have been continuously increasing which is strange if we consider the government’s claim of historically high wheat production of 28 million tonnes. Analysts had also predicted a sharp decline in prices amid Russian wheat prices falling to Rs. 2,600 in Afghanistan which could keep the smuggling in check, but wheat has climbed anyway.
The increase has been attributed to the big traders and stockers hedging their bets against the government and its ability or rather inability to import wheat.
“Last month’s dip was to woo the farmers into selling and after that, the stockers know well that government lacks the dollars to import and even then, it may take two months before the wheat touches our shores,” said a market consultant while talking to ProPakistani.
He said that hoarders also realize that the caretaker government has limited jurisdiction in this regard which can also delay any import decision.
The wheat prices have been touching their highs across all the major markets of the country with Rs. 4,700 in Rahim Yar Khan and Pakpattan to Rs. 5,230 in Karachi. Karachi prices are always high due to being away from major wheat production zones.
Some analysts have also started to question the government wheat production estimates to begin with which is not out of the realm of possibility for someone who for once realizes how data for these projections are gathered but more on that later.
The potential decision by the provincial government to allow public and private sector wheat import has been touted as a big move on the part of the caretaker government but market reports state that the stockers and hoarders have played their game and made their profits for the time being and might start selling with any announcement in the regard.
I suspect the wheat production data of 2022.23 that claimed the 27 million tons production. Thousands of agriculture acres were destroyed by housing colonies and many acreage were occupied by canola crop. So, bumper crop production of wheat is a lie. I’m suspicious, Pakistan food future is precarious as population is increasing while agricultural land is being destroyed with the same pace. So food crises always remain in the country.
PM was chanting slogans that we have Bumper crop this season….then all of sudden government is going to import wheat!!!! Food security department, Ministry of Agriculture should be questioned about their performance
What performance should be questioned. It is the PM who is coming up with fake figures about production.