Govt’s wheat policy behind current crisis: imports needed despite record production

ISLAMABAD:* The government’s *agricultural policy and privatization push* are being blamed for Pakistan’s worsening wheat crisis, as the country faces the prospect of *importing 1 million tons of wheat despite producing 29.6 million tons this year* — 4.3% more than last year.

*From Rs. 3,500 to Rs. 5,000: Farmers and Consumers Hit*  

According to farmers’ representatives, wheat was procured from growers at just *Rs. 3,500 per maund*. The open market rate has now surged to *Rs. 5,000 per maund*.

Sources say the crisis stems from the decision to *halt procurement by PASSCO and provincial food departments*. The government announced that *11 private companies* would handle wheat purchase. When they failed to meet targets, only a token procurement was done by the state.

“This is the direct result of the *privatization of food*,” said a spokesperson of the *Pakistan Kisan Rabita Committee*.

*April 17 Protests Ignored*  

On *April 17*, the Pakistan Kisan Rabita Committee staged *over 100 protests in 68 districts* in a single day. Their demands: *end privatization, resume PASSCO procurement, and fix wheat support price at Rs. 4,000 per maund*.

Protesters say no government representative sat down to hear them.

*Where Did The Wheat Go?*  

Officials admit last year *no wheat was imported*. This year, an *urgent import of 1 million tons* is being planned despite no floods or refugee influx that could explain a shortage.

The key difference, analysts say, is policy. Until last year, the *Punjab government borrowed from banks and directly procured wheat from farmers*, keeping market control. This year, under *World Bank, IMF and government privatization priorities*, Punjab adopted *“private sector procurement.”*

*Target: 3 million tons. Actual procurement: only a few thousand tons.*

The remaining wheat is now with *farmers, hoarders, and traders* — what critics call the “beloved private sector” — who are holding stocks waiting for prices to rise further.

With *no government stock to regulate the market*, flour prices are expected to rise to levels *consumers cannot afford and the government cannot afford politically*, erasing gains made in controlling food inflation over the last two years.

*Federal Intervention and Imports*  

The *federal government does have some wheat stock*. Initially, Punjab, Sindh and the Centre agreed to *jointly import 1 million tons*. Within days, both provinces withdrew and asked the Centre to *lend from federal reserves*.

Now the *Trading Corporation of Pakistan (TCP)* will handle imports, while provinces attempt to regain control of the market using federal stock.

*“Reinstate Old Policy” Demand*  

Farmers’ groups argue the damage can still be reversed: *reinstate the old procurement policy and seize wheat from hoarders*.

“But that would mean using force against the private sector, not farmers — something this government will neither do nor can do,” a Kisan Committee leader said. “These days, except for ministry titles, *handing everything to the private sector is called governance*.”

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