Pakistan rushes to import wheat amid domestic supply shortage
Pakistan is increasing wheat imports after production fell to 27.48 million tonnes against a 29.6-million-tonne target, below annual consumption of 30 million tonnes. The government approved 1 million tonnes of emergency imports, while TCP plans additional purchases to prevent shortages until the 2027 harvest.
Pakistan has stepped up wheat imports after domestic production fell short and supply pressures intensified. According to SUPARCO, the current season’s crop is estimated at around 27.48 mln tons versus a target of 29.6 mln tons, while annual consumption is about 30 mln tons.
The situation was worsened by delays in government purchases from local farmers. Authorities had an opportunity to buy wheat at lower prices during the spring and summer harvest period, but disputes between the federal government and provincial administrations allowed a large share of grain to move into private hands, contributing to higher flour prices by September.
With the risk of a winter shortage increasing, the government approved emergency imports of 1 mln tons of wheat. The state-run Trading Corporation of Pakistan (TCP) initially planned to purchase 750 thsd tons but later reduced the target to 550 thsd tons after Punjab and Sindh revised their requirements.
TCP also launched an additional tender for 185 thsd tons of wheat to cover remaining needs, with bids due to be opened at the end of September. The purchases come amid stronger Pakistani demand for imported grain.
Imported wheat is currently priced at around $320–325/t CFR Karachi, but freight, port charges and inland transport will push the final cost higher. The emergency purchases are expected to help Pakistan avoid shortages until the 2027 harvest, although they are unlikely to bring a significant decline in flour prices.
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Source : UkrAgroConsult
