Karachi, Oct 11 (TNS): Pakistan’s wheat stocks have swelled to a record nine million plus tonnes. As per flour millers’ data, substantial wheat stocks have accumulated due to carryover stocks of previous years. Wheat consumption in Pakistan stands at 23m tonnes per annum.
Pakistan has been reaping bumper wheat crop – between 25-26m tonnes – for the last two years. However, this huge stock now appears to be a liability keeping in view consumption and unfeasible export potential.
Currently, the Punjab food department holds 6m tonnes of the commodity, followed by 1.7m tonnes by Sindh, 1.4m tonnes by Pakistan Supply and Storage Corporation (Passco) and 200,000-300,000 tonnes by Khyber Pakhtunkhwa and Balochistan food departments.
“Our wheat stocks are at a historical high but it does not auger well for consumers and exports,” Central Chairman Pakistan Flour Mills Association (PFMA), Chuadhry Ansar Jawed said.
Pakistan cannot take benefit from the huge stocks due to high support price of Rs1,300 per maund (equivalent to over $300 per tonne) while global prices hovers between $150-170 per tonne, he said.
“Consumers are paying more for different flour varieties due to higher support price while millers also adjust flour price depending on the open market rate of wheat,” he added.
The market is abuzz with reports of another good crop by March/April next year. Good weather has so far proved beneficial for impressive wheat harvest in the last two years and per acre yield has also increased.
Out of the 9m tonnes wheat stocks, the provincial governments are likely to issue 3-3.5m tonnes of the commodity to flour mills.
