CAP Opposes Government Wheat Import Plan, Citing Financial Risks

The Cereal Association of Pakistan (CAP) has expressed strong opposition to the government's proposed plan to import wheat through the Trading Corporation of Pakistan (TCP).

CAP Chairperson Muzammil Chappal warned that state-led imports could result in billions of rupees in financial losses and undermine the country's wheat deregulation policy.

The association urged the federal government to allow the private sector to import wheat without subsidies, arguing that market-based imports are more efficient and do not place any burden on the national exchequer.

Chappal noted that during FY24, the private sector imported 2.7 million tonnes of wheat without subsidies or public financing, helping maintain adequate wheat and flour supplies across the country.

According to Chappal, the imports significantly reduced domestic wheat prices, which had risen to Rs123 per kilogramme before the private sector entered the market. Following the imports, prices fell to Rs95 per kilogramme.