Punjab Government Plans Major Wheat Purchase from PASSCO Amid Supply Concerns

The Punjab government in Pakistan plans to purchase one million metric tons of wheat from PASSCO (Pakistan Agricultural Storage and Supplies Corporation). According to documents, the total cost of this purchase is estimated at Rs103.75 billion. However, the finance department has raised objections to the proposal, citing concerns over supply and demand, as well as existing reserves.

The finance department requested detailed information on the age, quality, and shelf life of PASSCO's wheat stock. They also instructed that only essential quantities be purchased from PASSCO at each stage, with renegotiation of prices and availability to be done in consultation with the federal ministry of food security.

Under the current plan, wheat will be procured in Punjab at a rate of Rs4,150 per 40 kg. The food department aims to release 5,000 metric tons of wheat daily. With an estimated requirement of 1.3 million metric tons by March 2027, the government hopes to meet this target through this procurement plan.