CAP calls for allowing private sector to import wheat

Karachi: The Cereal Association of Pakistan (CAP) has called on the government and Standing Committee to permit private sector wheat imports to circumvent potential shortages and curb rising wheat prices. CAP recognizes the federal government's Trading Corporation of Pakistan (TCP) attempts to import wheat for domestic use but contends that the 750,000 metric tons procured will not suffice to meet Pakistan's 4 million metric ton annual wheat shortfall.

Muzzamil Chappal, CAP's Chairman, stated that international wheat prices are significantly lower at USD 320-325 per metric ton, and after factoring in freight, local charges, and other import costs, the private sector could make wheat available at approximately Rs. 100-101 per kilogram without subsidies. Chappal highlighted that the current provincial quota system may not adequately address Pakistan's wheat needs.

Permitting private sector wheat imports would augment supply, enhance market availability, and alleviate price pressures, alleviating consumer hardships. The Association warns that postponing private-sector wheat imports could precipitate a severe wheat shortage and worsen market conditions. Since the government's procurement accounts for only a fraction of Pakistan's overall requirement, CAP urges the Standing Committee and government to promptly allow private wheat imports to secure sufficient stocks, bridge the demand-supply gap, boost market supply, and shield consumers from additional price hikes.