‘Federal govt is planning to procure 6.5m tons of wheat’

ISLAMABAD: The federal government is planning to procure 6. 5 million tons of wheat to ensure food security in the country. In a briefing to the National Assembly Standing Committee on National Food Security and Research held here on Thursday under the chairmanship of Syed Tariq Hussain, the Secretary of the Ministry of National Food Security said that, as per the government’s plan, it will pay storage charges to the private entities. The officials said that a total of 21 firms have been pre-qualified, and procurement will be awarded to multiple bidders offering the lowest rates to ensure transparency and avoid reliance on a single entity. Each firm must demonstrate a minimum financial solvency of Rs1 billion, and an upper procurement limit has been set. The Economic Coordination Committee (ECC) will approve the administrative and financial framework, which will be incorporated into the national budget, and procurement operations are expected to commence in the last week of April. The panel was informed that the government has fixed a Minimum Support Price (MSP) of Rs3, 500 per 40 kg to stabilize the market and protect farmers. Approximately 40 percent of total production enters the market, while the remainder is retained by farmers for their own consumption. The estimated national wheat production for the current year stands at around 29 million tons. The Committee urged the Ministry to expedite the process, noting that harvesting in Sindh begins earlier than in other regions and that farmers there are currently selling wheat at significantly lower rates, around Rs2, 700 per 40 kg. It cautioned that delays would primarily benefit middlemen rather than farmers. The committee emphasized that procurement companies must strictly adhere to the MSP of Rs3, 500 per 40 kg and ensure purchases are made from a broad base of farmers so that the benefits reach the wider farming community rather than a limited segment. Earlier, the panel took up a Point of Order regarding the ongoing potato crop crisis. The Ministry briefed the committee on progress made over the past two months following earlier directions, as well as developments after the formation of a high-level committee by the Prime Minister, chaired by the Deputy Prime Minister, to support farmers and facilitate exports amid border constraints with Afghanistan and regional challenges involving Iran. The Director General (DG), Department of Plant Protection, presented comparative export data, including figures from the previous year when exports were routed through Afghanistan to Central Asian countries. However, the latest data showed no significant improvement despite the committee’s recommendations, which included multiple-entry visas, transport facilitation, alternative export routes, storage arrangements, and government procurement. The committee expressed serious concern, noting that nearly 90 percent of the potato harvest has been completed without any meaningful intervention. It was observed that, similar to previous crises affecting crops such as rice, wheat, and sugarcane, the current situation has resulted in substantial financial losses for farmers. The committee discussed the issue of betel nut consignments detained for the past three months despite being imported under valid permits, causing financial losses and disruption to trade. The Ministry informed the committee that, under the SRO issued on December 23, 2025, permissible limits for water activity and aflatoxin had been reduced from 30 ppb to 15 ppb. The Special Invitee raised concerns regarding the prolonged detention of consignments, lack of coordination between the Department of Plant Protection and Customs, the limited number of designated laboratories, and responsibility for losses, particularly in cases where transactions predated the new policy. The Ministry of Law and Justice clarified that the revised regulations apply only to transactions made after the notification date. The Secretary stated that any financial losses would be borne by the importers, emphasizing that betel nut is not an essential food item. A Customs representative added that no concessions would be granted except where goods declarations had already been filed and all formalities completed, subject to approval, and that consignments linked to pre-policy transactions could be released upon fulfillment of the required procedures. The Committee was further informed that the government has invested approximately Rs500 million in internationally accredited and technologically advanced these two laboratories, and that consignments would be released promptly once documentation and formalities are completed. The Chairman of the Karachi Port Trust highlighted that importers are incurring significant daily losses, with costs increasing by around 10 percent, while market prices have risen sharply. He noted that approximately 300 containers currently held could meet market demand for up to six months and that no consignments have been cleared since the issuance of the new SRO. The parliamentary body directed the Ministry to immediately constitute a joint committee comprising representatives from the Ministry, Department of Plant Protection, Customs, and Karachi Port Trust to resolve the matter in accordance with the rules and on a priority basis. It further directed that all detained consignments be released without delay upon completion of the required formalities. Copyright Business Recorder, 2026

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