Private Wheat Importers Reject Govt Plan Over Billions in Losses

Pakistan's private wheat importers have rejected the government's plan to import wheat through the Trading Corporation of Pakistan (TCP), citing potential billions in losses and a reversal of the country's deregulation policy. The Cereal Association of Pakistan (CAP) has urged the government to allow private sector imports of four million tonnes of wheat, split into two phases of two million tonnes each.

CAP Chairman Muzzamil Chappal emphasized that market-driven imports are more efficient and place no burden on the national exchequer. He noted that the private sector had successfully imported 2.7 million tonnes of wheat in FY2023-24 without subsidies, which helped stabilize supplies and reduce wheat prices from Rs. 123 per kilogram to Rs. 95 per kilogram.

Chappal also pointed out that July and August are an ideal time for imports due to competitive international prices during the Black Sea and South American harvest seasons. He added that Pakistan currently holds around 450,000 tonnes of two-year-old wheat, while stocks stored by the Pakistan Agricultural Storage and Services Corporation (PASSCO) are deteriorating in warehouses.