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Govt decides to import 4m MT of wheat

ziaulislam

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ISLAMABAD:
The government on Monday decided to import four million metric tons of wheat this year to meet the domestic consumption requirements and again “hard-pressed” the national data collecting agency to reconsider its inflation calculation methodology. Finance Minister Shaukat Tarin again asked the Pakistan Bureau of Statistics (PBS) to change its price methodology as he believed that the prices of essential commodities were over-reported, officials of the Ministry of Finance and PBS told The Express Tribune.

The PBS is under pressure as the government had not been able to control wheat, wheat flour and sugar prices that doubled in less than three years. Headed by Tarin, the National Price Monitoring Committee (NPMC) took the decision to import four million metric tons of wheat. A summary will now be presented before the Economic Coordination Committee (ECC) of the Cabinet for formal approval. The NPMC met two days after the PBS reported that inflation skyrocketed to 11.1% in April on the back of higher food prices. This happened despite the fact that Prime Minister Imran Khan had promised to personally monitor the prices.

Ministry of National Food Security secretary briefed the committee about the arrangements under way to import wheat for building strategic reserves and to ensure steady supply during the current year, according to a statement of the finance ministry. A summary will be presented before the ECC for the requisite approval in this regard, it added. At the current price of $301 per metric ton, it will require a whopping $1.2 billion to import four million metric tons of wheat. The cabinet has already allowed import of three million metric tons of wheat for 2021- 22 but Tarin decided to increase the quantity by another one million tons, an official of the finance ministry said.

It was decided that the government would import two million metric tons of wheat through the Trading Corporation of Pakistan and one million metric ton under the government-togovernment deal. The private sector will be allowed to import the remaining one million ton by waiving off duties to bring down import prices, it was decided. At $301 per metric ton price, the landed cost of wheat will be Rs2,100 per 40kg while after including the transportation and handling charges, it will cost Rs2,400 at the current market prices, according to an official of the Ministry of National Food Security and Research.

During the first nine months of this fiscal year, Pakistan imported 3.6 million metric tons of wheat costing $983.3 million, according to the PBS. The total leftover wheat stocks across the country were less than 400,000 metric tons. The meeting was informed that for the year 2021-22, the wheat consumption was estimated at 29.3 million metric tons.
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incompetent govt didnt increase wheat prices now we are seeing massive shortage

its okay to import wheat at 2400 rs but not okay to pay 1800rs for wheat??

PMLN govt was much better atleast they increased the wheat prices consecutively for 5 yrs @Kabira

now this will cost 1B$ of reserves
 

El Sidd

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It was decided that the government would import two million metric tons of wheat through the Trading Corporation of Pakistan and one million metric ton under the government-togovernment deal.
Let me just wild guess the other country.

Afghanistan
 

HRK

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Now its the job of provincial governments to set price for wheat, further Provincial Food Departments are responsible to meet the target of wheat purchase form Local Farmers .... and they are also responsible for the release of wheat to Flour Mills.

Now its not the responsibility of Federal Government .... as Federal Government could deny or give permission ONLY for the Import or Export of wheat in the country on basis of data provided by the Provincial Food Departments .....

BUT no Its IK who is responsible for shortage of wheat and Federal Government is incompetent, we all should blame him to vent our frustration ..... who care bout logic.

This purchase seem related to counter strategy of Federal Government to avoid the situation of deliberate shortage created last year by Sindh Government .... as even last year wheat reserve in country was available and production was little short of annual requirement. This can be understand by policy of giving permission to import wheat to private importers as well.

Last year Food Department in Sindh deliberately adopted 'go slow policy' for wheat purchase which allowed hoarders to purchase the wheat from farmers for the purpose of Hoarding ....
 
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Patriot forever

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Now its the job of provincial governments to set price for wheat, further Provincial Food Departments are responsible to meet the target of wheat purchase form Local Farmers .... and they are also responsible for the release of wheat to Flour Mills.

Now its not the responsibility of Federal Government .... as Federal Government could deny or give permission ONLY for the Import or Export of wheat in the country on basis of data provided by the Provincial Food Departments .....

BUT no Its IK who is responsible of shortage of wheat and Federal Government is incompetent, we all should blame him to vent our frustration ..... who care bout logic
The fact of the matter as far as i can see is we will probably have the highest wheat production to date (around 26 M MT) but our consumption has increased alot and we are barely able to meet the demand. The wheat will also be used to replenish reserves. The combined need is around 29M MT.

Cant actually blame anyone since production has surpassed target, better safe than sorry later on so i dont see any thing wrong with this decision.
 

HRK

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The fact of the matter as far as i can see is we will probably have the highest wheat production to date (around 26 M MT) but our consumption has increased alot and we are barely able to meet the demand. The wheat will also be used to replenish reserves. The combined need is around 29M MT.

Cant actually blame anyone since production has surpassed target, better safe than sorry later on so i dont see any thing wrong with this decision.
bhai just a simple question how the demand of wheat increased approximately 12% while wheat consuming population remain almost same within one year .... ???

No infant or baby below 2 years consume wheat as flat bread ....

even if we accept that due to some reason wheat consumption has increased ~12% then this alone can not justify the number of inactive flour Mills [click here and here] .... which as per estimate b/w 18%-29% out of 1,700 Flour Mills are out of operational ......
 

ziaulislam

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The fact of the matter as far as i can see is we will probably have the highest wheat production to date (around 26 M MT) but our consumption has increased alot and we are barely able to meet the demand. The wheat will also be used to replenish reserves. The combined need is around 29M MT.

Cant actually blame anyone since production has surpassed target, better safe than sorry later on so i dont see any thing wrong with this decision.
As farmer family the blame lies in not setting price that is viable
Most of barrani farmers left their land vacant as wheat wasnt profitable and other stuff isnt cultivable..this easily cut off 1m tones by itself in KPK punjab
 

Bilal.

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bhai just a simple question how the demand of wheat increased approximately 12% while wheat consuming population remain almost same within one year .... ???

No infant or baby below 2 years consume wheat as flat bread ....

even if we accept that due to some reason wheat consumption has increased ~12% then this alone can not justify the number of inactive flour Mills [click here and here] .... which as per estimate b/w 18%-29% out of 1,700 Flour Mills are out of operational ......
How did it change from bumper crop to massive import though?

 

HRK

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How did it change from bumper crop to massive import though?

Wheat crop would be bumper this year but this time it seems Federal Government want to prepare itself and private sector so that the Hoarders could not remain effective ....

Its simple strategy of supply chain management by increasing the stock of commodity [with Federal Government] than the actual demand of the market so that even if some element want to interfere to disrupt routine supply into the market like last year Federal government would have stock of wheat available this would make the interference of Hoarders with political support ineffective.
 

Bilal.

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Corp would be bumper but this time it seems Federal Government want to prepare itself and private sector so that the Hoarders could not remain effective ....

Its simple strategy of supply chain management by increasing the stock of commodity [with Federal Government] than the actual demand of the market so that even if some element want to interfere to disrupt routine supply into the market like last year Federal government would have stock of wheat available this would make the interference of Hoarders with political support ineffective.
In that case a massive import of 4m tons wouldn’t make sense when the new crop is almost arriving. I can draw only two conclusions:

- The bumper crop estimate was just a result of an over active imagination on someone’s part

- Our clueless and out dated statistics from the bureaucracy is sticking the initial estimate of 26m tons and this major (and expensive) decision is being made on faulty data which will result in the same bureaucrats recommending export in a few months. And potentially making money in both import and export.
 
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HRK

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In that case a massive import of 4m tons wouldn’t make sense when the new crop is almost arriving. I can draw only two conclusions:

- The bumper crop was just an over active imagination on someone’s part

- Our clueless and out dated statistics from the bureaucracy is sticking the initial estimate of 26m tons and this major (and expensive) decision is being on faulty data which will result in the same bureaucrats recommending export in a few months. And potentially making money in both import and export.
I doubt the estimated figure of 30 million metric tons demand .... which in any case does not make sense as this much increase of demand in just 1 year is not possible .....

But Federal Government is trying to meet this 30 million metric tons figure as it is estimated 26 million metric tons will be produced in Pakistan rest would be imported.
 

Bilal.

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I doubt the estimated figure of 30 million metric tons demand .... which in any case does not make sense as this much increase of demand in just 1 year is not possible .....

But Federal Government is trying to meet this 30 million metric tons figure as it is estimated 26 million metric tons will be produced in Pakistan rest would be imported.
So if our hunch is correct, we are about to import a massive $1.2 billion worth of wheat on faulty data both on demand and supply side.
 

HRK

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So if our hunch is correct, we are about to import a massive $1.2 billion worth of wheat on faulty data both on demand and supply side.
Yaap ...... but this figure of demand of wheat look more suspicious as it will provide a sort of cover to deliberate mismanagement of wheat last year ......
 

AbuzarIlyas

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Pakistan have lot of plains including Thal desert, Kacchi plain to irrigate and grow the crops of our requirements but no government has given heed to the importance of such things. Kacchi Canal is still inoperational after decades passed. Wheat is one of the easiest crop to grow in Pakistan but we are importing it too...
 

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