More than 5 million tonnes of wheat missing in Punjab and Sindh, government’s $1 billion import plan

ISLAMABAD – The wheat crisis in Pakistan continues to raise questions as people ask where more than 5.1 million tonnes of wheat has disappeared in two major regions of the country.

Recent reports claim about 4.5 million tonnes of wheat in Punjab and another 600,000 tonnes in Sindh, which cannot be accounted for in official records. The missing stocks raise alarm bells, not only because of their sheer volume but also because the federal government has already decided to import 1 million tonnes of wheat to meet domestic demand.

The mystery unfolded when Punjab officials asked other provinces whether the missing wheat had been transported across provincial borders. The answer was clear as no province reported receiving such a quantity. He pointed to another possibility, that a large quantity of wheat may have been bought by private traders and moved into storage outside the government’s tracking system.

If these stocks are not available, experts warn that Pakistan could once again spend nearly $1 billion on wheat imports, putting fresh pressure on the country’s economy and foreign exchange reserves. Ironically, the crisis occurred despite encouraging production figures as wheat cultivation rose to 9.48 million hectares from 9.07 million hectares last year, while production reached 29.61 million tonnes.

In general, a larger crop will reduce supply concerns. Instead, questions are being raised about what happened after the harvest. Agricultural experts believe that the answer lies in the pattern of wheat procurement over the past few years.

For decades, Pakistan bought large quantities of wheat directly from farmers, ensuring strategic reserves and price stability. But after policy changes and the gradual withdrawal of the wheat support price mechanism, the authorities relied more on the private sector for wheat procurement and storage. This year, however, the system failed to deliver the expected results.

Punjab procured only 480,000 tonnes against the target of 3 million tonnes while Sindh procured close to 200,000 tonnes. This left government warehouses with much lower reserves than planned. The support price of Rs 3,500 per maund also discouraged private buyers, officials said. When Punjab later encouraged the private sector to step in, businessmen reportedly sought bank financing before making large purchases.

At the start of the procurement season, wheat prices in Sindh and KP rose to around Rs 4,500 per maund, making private procurement increasingly attractive. Many hoarders bought wheat directly from farmers without tax documentation or permit requirements before storing large quantities in private warehouses. Although there is no official confirmation linking these stockpiles to the missing wheat, the development has intensified concerns about weak surveillance and monitoring.

Abolishing the support price system without creating an effective alternative weakens both the farmers and the government. At the same time, insufficient procurement by provincial governments reduced public wheat reserves at a time when private players became increasingly active in the market.

Last year, Pakistan spent more than $1 billion importing about 3.5 million tons of wheat. Even after these imports, the country still faces a shortage of about 3.5 million tonnes of wheat. If the current situation is not resolved, experts believe that additional imports may be inevitable.

To prevent supply disruption, the federal government decided to import 1 million tonnes of wheat and release the wheat stocks held by the Pakistan Agricultural Storage and Services Corporation (PASCO) to the provinces as per their requirements.

The national average rose to Rs 4,611 per 40 kg in July, from Rs 4,516 a week ago. Wheat was being sold at around Rs 4,423 in Punjab, Rs 4,625 in Sindh, Rs 5,100 in KP and Rs 4,800 in Balochistan and other areas.

Punjab has fixed the price of wheat for 2026 at Rs 3500 per maund.

The post More than 5 million tons of wheat missing in Punjab and Sindh, 1 billion dollar import plan of the government appeared first on Daily Pakistan English News.

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