Provincial Wheat Move Punjab and Sindh Reject Import Costs

Punjab and Sindh have stepped back from a planned provincial wheat move. Both provinces have refused to accept the financial burden linked to imports. Instead, they want the federal government to provide stocks. The move follows their failure to buy enough wheat from local farmers. Punjab remains in a relatively comfortable supply position. It received 800,000 metric tonnes from federal stocks. Of that amount, 533,000 tonnes remain at Pakistan Agriculture Storage and Services Corporation facilities. Punjab has also purchased around 500,000 tonnes from farmers. However, that amount remains far below its three million tonne procurement target. The shortfall has added pressure to the wider supply situation.

Supply Shortage Pushes Prices Higher

The weak procurement by Punjab and Sindh helped create the current market crisis. As a result, wheat prices have increased by about three fourths. The latest dispute now focuses on who will carry the cost of imported supplies. Provincial authorities are seeking federal support instead. A draft agreement sets several conditions before the import plan can take effect. All parties must sign the agreement first. The Trading Corporation of Pakistan must also confirm the conditions in writing. Furthermore, the Ministry of National Food Security must provide written concurrence.

Import Plan Faces Several Conditions

The conditions include an Economic Coordination Committee decision. Provinces must also confirm their demand for imported supplies. In addition, the competent authority must approve the plan. Provinces must arrange payment security for their allocated quantities.

The Trading Corporation must receive all required approvals before starting procurement. These include approvals for foreign exchange cover and import letters of credit. Under the draft, provincial governments must provide unconditional written commitments. They must also maintain enough payment security throughout the programme.

All taxes, duties, cess and other charges will count toward the required security. However, the government has not yet settled the issue of duty waivers. Prime Minister Shehbaz Sharif will decide whether these duties should be waived. Therefore, the import plan still faces important financial and administrative hurdles.

For consumers, the outcome could affect prices and supply in the coming period. Meanwhile, provincial and federal authorities must resolve their differences quickly. The dispute also highlights concerns about local procurement targets. Better coordination could help reduce pressure on the market and protect consumers.