Govt to hold up to 6 million tonnes of wheat as strategic reserves

The federal government will maintain strategic wheat reserves of up to 6 million tonnes to ensure uninterrupted supplies and prevent shortages across the country, Food Security Minister Rana Tanveer Hussain said on Monday at a press conference in Islamabad.

Hussain said Pakistan has sufficient wheat stocks to meet national demand this year. He added that the government is prepared to deal with possible market disruptions and keep the staple food available.

The announcement came days after Prime Minister Shehbaz Sharif set the indicative wheat price for 2027 at Rs4,500 per 40kg, which is Rs1,000 higher than the previous year's price. The minister said the price was finalised after consultations with all provincial governments. He said it would help stabilise the domestic market, protect farmers' interests and create opportunities for wheat exports next year.

According to Hussain, imported wheat would cost roughly Rs4,500 per 40kg as well, which makes buying locally the more suitable option. He said the government would give priority to local farmers rather than depend unnecessarily on imports.

The minister said more than 1.3 million tonnes of wheat have been supplied to provincial governments from the stocks of the Pakistan Agricultural Storage and Services Corporation (Passco). He added that the government could also arrange imports of up to 550,000 tonnes, depending on provincial requirements and market demand.

Expressing concern over recent swings in wheat prices, Hussain described the current increase as artificial and blamed certain market elements for manipulating prices. He said enough stocks are available across the country and he expected prices to return to normal within a few days. The government is monitoring the market and will act against artificial shortages, speculation and unjustified increases, he said.

Hussain also said policies on seeds, olives and biotechnology have been prepared to modernise agriculture, raise crop productivity and encourage innovation. He said access to quality seeds, modern technology and stronger regulation is essential to increase productivity and lower farmers' production costs.

Pakistan Kissan Ittehad President Khalid Mahmood Khokhar welcomed the Rs4,500 indicative price and said he was satisfied with the consultation process. He said farmers need a predictable and reasonable price. Last month the association had demanded Rs5,000 per 40kg and warned that farmers might avoid sowing wheat if crop policies were delayed.