CAP Seeks Private Sector Wheat Imports to Mitigate Potential Shortage
The Cereal Association of Pakistan (CAP) has urged the government to allow private sector imports of wheat to prevent a potential shortage and mitigate further price increases in the domestic market.
CAP acknowledges the federal government's efforts to import wheat through Trading Corporation of Pakistan (TCP), but believes that the 750,000 metric tons being procured by TCP will not be sufficient to meet the country's overall wheat requirements.
Pakistan's annual wheat shortage is estimated at approximately 4 million metric tons, with additional supplies needed to bridge the demand-supply gap and ensure adequate availability in the domestic market. According to Muzzamil Chappal, Chairman of CAP, 'the current international market offers significantly more competitive prices' for wheat, available at around USD 320-325 per metric ton.
After accounting for freight, local charges, and other import-related expenses, the private sector can potentially make wheat available in Pakistan at approximately Rs. 100-101 per kilogram without involving any subsidy. Wheat prices in the domestic market have already increased to around Rs 125-130 per kilogram, while prices in Khyber Pakhtunkhwa have reached up to Rs 140 per kilogram.