Pakistan : CAP calls for allowing private sector to import wheat
Pakistan’s Cereal Association urged immediate private-sector wheat imports, saying the government’s 750,000-tonne TCP procurement is insufficient against an estimated 4-million-tonne annual shortage. Competitive international prices could support imports, while rising domestic wheat prices risk worsening shortages and consumer pressure.
KARACHI: The Cereal Association of Pakistan (CAP) has urged the government and the relevant Standing Committee to immediately allow the private sector to import wheat to avert a potential shortage and prevent further increases in domestic wheat prices.
CAP acknowledges the federal government’s efforts to imports wheat through Trading Corporation of Pakistan (TCP) for domestic consumption. However, it believed that the 750,000 metric tons being procured by the TCP will not be sufficient to meet the country’s overall wheat requirements.
According to Muzzamil Chappal Chairman CAP, Pakistan’s annual wheat shortage is estimated approximately 4 million metric tons, and therefore additional supplies will be required to bridge the demand-supply gap and ensure adequate availability in the domestic market.
He informed that the current international market offers significantly more competitive prices, with wheat available at approximately USD 320-325 per metric ton. After accounting for freight, local charges and other import-related expenses, the private sector can potentially make wheat available at around Rs. 100-101 per kilogram without involving any subsidy.
The import is particularly important as wheat prices in the domestic market have already increased to approximately Rs 125-130 per kilogram, while prices in Khyber Pakhtunkhwa have reached around Rs 140 per kilogram, he added.
Chappal emphasized that the prevailing provincial quota system alone may not be sufficient to address the country’s wheat requirements. Allowing the private sector to import wheat and make it available in the open market in bulk quantities would increase overall supply, improve market availability and help ease price pressures, ultimately providing relief to consumers, he added.
The Association has cautioned that any delay in allowing private-sector imports could result in a significant shortage of wheat and further deterioration in market conditions.
With the Government’s current procurement covering only a portion of the country’s overall requirement, immediate private-sector participation is essential to ensure sufficient wheat stocks and uninterrupted market supply.
Chappal on behalf of CAP has strongly urged the relevant Standing Committee and the government to immediately permit private-sector wheat imports, so that adequate stocks can be arranged in time, the demand-supply gap can be addressed, market supply can be improved and consumers can be protected from further price increases.
To Read more about Wheat News continue reading Agriinsite.com
Source : Business Recorder
