CAP Warns of Wheat Shortage, Seeks Private Sector Imports

The Cereal Association of Pakistan (CAP) is calling on the government to allow private sector imports of wheat to prevent a potential shortage and alleviate rising domestic prices.

CAP acknowledges the efforts of the federal government's Trading Corporation of Pakistan (TCP), which is importing 750,000 metric tons of wheat for domestic consumption. However, CAP believes that this will not be enough to meet the country's overall wheat requirements, estimated at approximately 4 million metric tons annually.

Muzzamil Chappal, Chairman of CAP, points out that international market prices are significantly more competitive, with wheat available at around USD 320-325 per metric ton. After accounting for freight and other import-related expenses, the private sector could potentially make wheat available in Pakistan at approximately Rs 100-101 per kilogram without any subsidy.

The current domestic price of wheat is around Rs 125-130 per kilogram, while prices in Khyber Pakhtunkhwa have reached as high as Rs 140 per kilogram. Chappal emphasizes that allowing the private sector to import wheat and make it available in bulk quantities would increase overall supply, improve market availability, and help ease price pressures.