Punjab Launches Rs20 Billion Initiative to Boost Wheat Storage Capacity

The Punjab government is launching a Rs20 billion infrastructure program to boost wheat storage capacity in the province. According to Director General Food Punjab Amjad Hafeez, this initiative aims to reduce post-harvest losses and improve supply chain efficiency. The program involves establishing modern wheat silos under a public-private partnership (PPP) model.

Hafeez stated that the government is also promoting the establishment of on-farm silos under the PPP model to increase farmers' storage capacity. This will enable them to store wheat safely, reduce distress sales, and secure better returns on their produce.

The program targets an estimated wheat storage gap of 20-25 million metric tonnes in Pakistan. Hafeez said that Punjab produced about 21.91 million metric tonnes of wheat this year against the estimated annual domestic consumption of around 16.5 MMT, leaving a surplus of approximately 5.41 MMT.

The government has started releasing wheat to flour mills at Rs3,800 per 40kg, which is lower than the prevailing open-market price of around Rs4,200. This move aims to maintain adequate flour availability in the market and keep flour and roti prices stable and affordable for consumers.