November 10, 2022
 

Pakistan imported six million tonnes of wheat at US$2 billion over two year period

Pakistan has imported more than six million tonnes of wheat between July 2020 until September 2022 worth over US$2 billion to close the gap between supply and demand as local output has declined, Dawn reported.

Data from the Pakistan Bureau of Statistics (PBS) showed grain imports totaled 856,813 tonnes, amounting to US$408 million in the first quarter of FY23, while total imports stood at 3.162 million tonnes, worth US$983 million, in FY21, up from 2.206 million tonnes, costing US$795 million, in FY22.

The average per-tonne price (APT), which was US$272 in FY21, increased to US$360 in FY22. The APT increased further to US$477 in IQFY23.

Aamir Abdullah, the chairman of the Sindh Zone of the Pakistan Flour Mills Association (PFMA), said that wheat imports were "inevitable" in order to maintain pressure on hoarders and prevent further increases in flour prices.

If no imports were made, the hoarders and market mafias would have taken control by issuing the grain on a wider demand and supply gap, driving prices above many people's means, he said. 

When asked if smuggling was a major factor in driving up the price of wheat grown locally, he said that it had been a historical trend for wheat to end up in Afghanistan.

He said that whenever there are shortages of wheat, reports of smuggling of wheat and wheat flour into the neighbouring nation start to surface.

According to recent economic surveys, the wheat crop was 24 million tonnes in FY20, increased to 27 million tonnes in FY21, and decreased to 26.4 million tonnes in FY22.

-      Dawn