Key Takeaways
- Punjab proposes Rs. 4,200 per maund for wheat support price.
- Sindh recommends Rs. 5,000 per maund, matching imported wheat costs.
- Government weighs subsidy options to avoid passing higher costs to consumers.
The federal government of Pakistan is seeking recommendations from the provinces on the support price for wheat, with Punjab proposing Rs. 4,200 per maund and Sindh recommending Rs. 5,000 per maund. This decision comes amid rising costs of imported wheat, which is priced around Rs. 5,000 per maund after additional expenses.
The government is also considering whether to provide a subsidy on wheat or pass the higher cost of the grain on to consumers. This decision is crucial as it could impact the livelihoods of farmers and the affordability of wheat for the general public.
Khyber Pakhtunkhwa has informed the federal government that it purchases wheat from Punjab, where the local wheat is currently priced at around Rs. 3,500 per maund. Local wheat has a gluten content of around 25 percent, compared to 23 percent in imported wheat, which is also being purchased at a higher price.
Earlier, three provinces had requested the procurement of 750,000 tons of wheat, but only 215,000 tons have been imported so far. Of the imported wheat, 100,000 tons were allocated to Khyber Pakhtunkhwa and 115,000 tons to Sindh. Khyber Pakhtunkhwa had initially requested 200,000 tons, Sindh 300,000 tons, and Punjab 250,000 tons of wheat.
The government plans to reissue a tender for the procurement of another 200,000 tons of wheat, which is expected to be imported at a higher price. This decision is based on the current market conditions and the need to ensure a steady supply of wheat to meet the demands of the provinces.
Farmers have expressed concerns that imported wheat is being purchased at Rs. 5,000 per maund, while local wheat was previously purchased at around Rs. 3,500 per maund. This disparity has raised questions about the fairness of the procurement process and the impact on local farmers.
The government is aware of the challenges faced by farmers and consumers, and is carefully considering the options available to ensure that the support price for wheat is set at a level that is both fair and sustainable. The decision will have significant implications for the agricultural sector and the economy as a whole.
