Pakistan's Wheat Harvest Turns into a Crisis Despite Record Production

Pakistan's wheat harvest has been touted as one of its largest ever, but despite producing nearly 30 million tonnes this season, the country is now facing a severe shortage. The provincial governments have asked for 2.2 million metric tons in writing, while the price per kilogram has soared to Rs 150.

According to official estimates, the available stocks are sufficient to meet national requirements, but poor procurement decisions and weak stock management have created a crisis. Farmers sold their crop immediately after harvest due to lack of storage facilities, needed liquidity to repay loans, and had little confidence in holding onto their produce.

The provincial governments chose not to undertake large-scale procurement, leading to an increase in private stockholding, tightened supplies, and rising prices. Consumers are now facing higher flour prices, while growers receive none of the benefits from the harvest prices. This system serves both producers and consumers poorly.

Punjab procured only 480,000 tonnes against its intended target of three million tonnes, and millions of tonnes in private hands remain unaccounted for. Both provinces are now seeking wheat from federal stocks, with discussions underway on importing additional supplies later this year.