Pakistan Provinces Clash Over Wheat Support Price Amid Import Costs

The federal government of Pakistan is seeking recommendations from provinces to set the wheat support price for the upcoming harvest, with Punjab and Sindh proposing vastly different rates. Punjab has suggested Rs. 4,200 per maund (40kg), while Sindh has put forward Rs. 5,000 per maund. The final decision remains pending as the government weighs whether to subsidize the cost or pass it on to consumers.

The National Assembly Standing Committee on National Food Security and Research has already advised a minimum support price of Rs. 5,000 per maund for the 2026-27 Rabi season, along with a uniform subsidy for farmers. Khyber Pakhtunkhwa (KP) has noted that it sources wheat from Punjab, adding complexity to the pricing debate.

Farmers have raised concerns over the disparity in prices, highlighting that locally produced wheat was previously bought at around Rs. 3,500 per maund, compared to the higher cost of imported wheat, which exceeds Rs. 5,000 per maund after transportation expenses. Local wheat contains about 25% gluten, while imported wheat has around 23%.

The government continues to arrange wheat imports to meet provincial demands. The Trading Corporation of Pakistan has secured 365,000 tonnes in its first tender at $348.83 per tonne, with a second tender starting at $339.36 per tonne. The provinces had initially requested 750,000 tonnes, but Punjab and KP later reduced their import needs, while Sindh maintained its demand for 300,000 tonnes.

The federal government is expected to reissue a tender for an additional 200,000 tonnes, potentially at a higher cost. The decision on the support price is crucial as wheat sowing season approaches, with farmers seeking clarity on returns and policymakers aiming to control flour and food prices.