Karachi : PBF urges govt to announce wheat support price
The Pakistan Business Forum (PBF) has called on the government to announce a support price for wheat for the current crop year and implement full wheat deregulation from the next year. PBF Chief Organiser Ch Ahmad Jawad cited last year’s losses due to unnecessary wheat imports by the caretaker government, affecting production targets. With a projected 11.1% decline in wheat output, Pakistan may need to import wheat, risking over $1 billion in costs. The PBF stressed the need for a clear wheat pricing and procurement policy to stabilize markets and ensure food security.
KARACHI: The Pakistan Business Forum (PBF) has urged the government to announce a support price for wheat for the ongoing crop year, while stressing the importance of implementing a complete wheat regulation mechanism from the next year onwards.
While addressing the meeting of wheat deregulation, PBF Chief Organiser, Ch Ahmad Jawad highlighted the challenges faced by farmers last year, attributing the losses in the wheat crop to the unnecessary import of wheat by the caretaker government. As a result, the production target for this year’s wheat crop has not been met.
“The deregulation of the wheat crop has yet to be fully enforced,” Jawad said, adding that if the crop is deregulated, the export of wheat could be allowed, potentially benefiting the farmers and stabilizing the market.
Estimates suggested that wheat production is expected to decline by 3.5 million metric tons, or 11.1%, this year. Last year, Pakistan saw a bumper wheat harvest of 31.4 million metric tons, but the current production is far lower than the country’s requirements. As a result, the country may be forced to import wheat to meet the domestic demand.
The PBF’s call for a wheat support price is aimed at ensuring that farmers are provided with fair compensation for their efforts and to mitigate the risks of further production shortfalls in the future. The demand also stresses the importance of a well-regulated wheat market to protect the interests of farmers and secure the country’s food security in the coming years.
The PBF further emphasised the need for a clear policy on wheat pricing and procurement, urging the federal government to coordinate with provinces to ensure market stability. However, with no formal policy in place and deregulation imminent, Pakistan faces uncertainty in wheat supply and pricing in the coming months.
In October last year, the Ministry of Food Security had informed Prime Minister Shehbaz Sharif that the failure to set wheat price and make procurement for the second consecutive year could discourage farmers from planting enough crop for local consumption. This, the ministry warned, might result in wheat imports valuing at more than $1 billion.
However, the federal and provincial governments did not announce wheat support price and implemented the International Monetary Fund (IMF) condition one year in advance.
The PBF was of the view that the IMF programme required full deregulation effective from fiscal year 2025-26, beyond Rabi 2024-25. It said that there was a need for a clear policy direction on wheat pricing and procurement needs to be enunciated by the federal government in consultation with provinces.
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Source : Business Recorder
