Pakistan's Wheat Import Plan May Only Slow Down Price Increases Temporarily
Pakistan's plans to import 750 thousand tons of wheat may only slow down further price increases in the country, according to market participants. The Trading Corporation of Pakistan held a tender for the imports, with nine international suppliers submitting offers totaling 656 thousand tons at prices ranging from $348.83 to $369.95 per ton.
The open-market wheat prices have stabilized at around PKR 12,500 per 100 kg, equivalent to about $45 per 100 kg or $451 per ton, following the start of preparations for wheat imports. Market participants believe imported wheat may prevent another price increase, but see little scope for a sharp decline at this stage.
High flour prices are already forcing consumers to reduce their purchases. Quality flour in 5 kg packs costs around PKR 950-1,000, or about $3.4-3.6, while a 10 kg pack costs around PKR 2,000, or about $7.2.
Market participants also note that 750 thousand tons of imported wheat is a relatively small volume for Pakistan, where daily wheat processing is estimated at around 70 thousand tons. Imports may therefore ease market pressure temporarily, but their impact on retail prices is expected to remain limited.