Pakistan's private wheat importers have urged the federal government to allow the private sector to import four million tonnes of wheat, warning that government intervention through the Trading Corporation of Pakistan (TCP) could result in billions of rupees in losses and reverse recent market reforms.

The Cereal Association of Pakistan (CAP) proposed importing wheat in two phases of two million tonnes each, saying the private sector can manage imports without subsidies or financial support from the government.

Concerns over rising wheat prices

CAP Chairman Muzzamil Chappal said the wheat deregulation policy introduced two years ago had successfully improved market efficiency. He noted that private importers brought in 2.7 million tonnes of wheat during FY2023-24, helping reduce wheat prices from Rs123 per kilogram to Rs95 per kilogram.

According to the association, July and August are the best months for imports because wheat from the Black Sea region and South America is available at competitive international prices. It also claimed Pakistan currently has around 450,000 tonnes of ageing wheat in storage, while stocks held by PASSCO continue to deteriorate.

CAP warned that wholesale wheat prices in Karachi, currently ranging between Rs116 and Rs120 per kilogram, could rise to Rs125 per kilogram if imports are delayed. Timely private-sector imports, it argued, could bring prices back to Rs95-Rs100 per kilogram.

Meanwhile, Sindh Food Minister Makhdoom Mehboob uz Zaman directed flour mills to keep prices as low as possible and said authorities had intensified action against wheat hoarding, profiteering and illegal trading. He added that the Sindh Food Department currently holds 446,947 tonnes of wheat, ensuring stable supplies across the province.