The Punjab Government has at last roused from its slumber and intends to permit the import of wheat by both the public and private sectors.
Punjab Government Evaluates Imports as Wheat Prices Near Rs. 5000
This morning, an urgent gathering convened under the leadership of the Secretary of Food to assess the issue at hand.
In the previous month, domestic wheat markets experienced a surge of up to Rs. 800 per 40 kg, following a decline to below Rs. 3,800 at the start of the same month.
Sources in the market suggest that the announcement of imports could potentially lead to a reduction of Rs. 400 per 20 kg bag in the minimum price.
The cost of wheat has been consistently rising, which is peculiar given the government’s assertion of record-breaking wheat production totaling 28 million tonnes.
Experts had anticipated a significant drop in prices, especially with the decline in Russian wheat prices to Rs. 2,600 in Afghanistan, which was expected to discourage smuggling activities. However, despite these factors, the price of wheat has surged nonetheless.
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The rise has been credited to major traders and stockers safeguarding their positions in response to the government’s struggle, or more accurately, its incapacity, to bring in wheat through imports.
A market consultant, speaking to ProPakistani, mentioned that the recent decrease was intended to attract farmers for sales. Subsequently, the stockers are aware that the government does not have sufficient funds to import.
Moreover, even if the import occurs, it might require approximately two months before the wheat arrives on our shores.
He mentioned that individuals who hoard items also understand that the temporary governing body has restricted authority in this matter, which could potentially postpone any determination regarding imports.
heat Prices Near Rs. 5000
The wheat prices have reached their peak levels in all the primary markets of the nation, ranging from Rs. 4,700 in Rahim Yar Khan and Pakpattan to Rs. 5,230 in Karachi.
The prices in Karachi remain consistently high due to its distance from the main wheat production areas.
Certain analysts have additionally initiated doubting the initial government wheat production assessments, which is plausible for an individual who, for once, comprehends the methodology behind gathering data for these forecasts.
However, more details regarding this matter will be discussed subsequently.
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The prospective choice by the regional administration to authorize the importation of wheat by both the public and private sectors has been hailed as a significant action on the caretaker government’s side.
However, market analyses indicate that the stockholders and hoarders have engaged in their strategies and garnered their gains temporarily. They may commence selling upon any announcement concerning this matter.