Pakistan’s private grain import sector has strongly voiced its opposition to potential government plans to import wheat through the state-owned Trading Corporation of Pakistan (TCP). Industry leaders caution that returning to state-led procurement could cost the national treasury billions of rupees and roll back the country’s recent market deregulation efforts.
In response, the Cereal Association of Pakistan (CAP) has requested permission for private traders to handle the required four million tonnes of wheat imports. The association proposed a two-phase commercial import plan—handling two million tonnes per phase—without relying on state subsidies or government funding.
Private Sector Advocates for Continued Deregulation
CAP Chairman Muzzamil Chappal highlighted the success of the market deregulation framework established two years ago, urging policymakers to avoid market intervention.
To support the case for private trade, CAP pointed to previous market outcomes:
- FY 2023–24 Performance: Private businesses imported 2.7 million tonnes of wheat without public funding.
- Price Impact: This private supply influx helped drive down domestic wheat prices from Rs. 123/kg to Rs. 95/kg.
Chappal noted that the July–August window offers optimal conditions for purchasing, as seasonal harvests in South America and the Black Sea region drive down global prices. He also expressed concern over existing domestic reserves, stating that approximately 450,000 tonnes of older wheat stocks—along with inventory held by the Pakistan Agricultural Storage and Services Corporation (PASSCO)—are actively deteriorating in storage.
Local Price Pressures & Market Forecasts
According to industry figures, wholesale wheat prices in Karachi currently hover between Rs. 116 and Rs. 120 per kilogram. CAP warns that if import decisions are delayed, prices could rise to Rs. 125/kg. Conversely, allowing prompt private imports could help push consumer rates back down to Rs. 95–100/kg.
| Scenario | Anticipated Price Range (per kg) |
|---|---|
| Current Wholesale Rate (Karachi) | Rs. 116 – Rs. 120 |
| Projected Rate if Imports are Delayed | Rs. 125 |
| Projected Rate with Timely Private Imports | Rs. 95 – Rs. 100 |
Provincial Response in Sindh
Separately, Sindh Food Minister Makhdoom Mehboob uz Zaman met with representatives from the Flour Mills Association to evaluate regional grain reserves and supply stability. The minister urged millers to keep retail flour prices accessible and reaffirmed the province’s crackdown on illegal hoarding and price gouging.
Key highlights from the Sindh Food Department include:
- Current Reserves: The province holds 446,947 tonnes of wheat, comprising carryover inventory, newly procured grain, and confiscated stocks.
- Internal Supply Chains: There are currently no restrictions on moving wheat across district borders within Sindh, ensuring steady local distribution.
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