ISLAMABAD — Pakistan is grappling with growing pressure on its wheat reserves as prices continue to rise despite government efforts to stabilise the market.
The Sindh cabinet has approved the release of 1.265 million tonnes of wheat at subsidised rates to flour mills and chakkies to ease inflation. Punjab, meanwhile, has imposed a permit regime to control the movement of wheat and flour between provinces, aiming to curb hoarding and speculation.
Despite these steps, the market remains volatile. Poultry and livestock feed mills consumed over 1.6 million tonnes of wheat within four months after harvest, using it as a cheaper alternative to maize. Punjab has now banned this practice, but experts say the decision came late, further tightening stocks.
Wheat prices continue to climb, with imported wheat estimated to cost Rs 3,500 to Rs 3,700 per maund after transportation. This is well above the Punjab government’s fixed price of Rs 3,000 per maund, raising concerns that imports could destabilise the market and add pressure on consumers already facing inflation.
Analysts warn that current reserves may not last until Sindh’s next harvest in March. Authorities are considering importing up to 1.5 million tonnes of wheat to prevent shortages, though high import costs and limited foreign reserves could complicate this plan.
Private sector stockpiling and delayed policy responses have intensified the crisis, raising fears of further price hikes and potential scarcity in the coming months.
This story has been reported by PakTribune. All rights reserved.