Punjab moves to expand wheat storage under Rs20bn plan

ISLAMABAD, Jul 21 (ABC): The Punjab government has launched a Rs20 billion public private partnership initiative to establish modern wheat silos across the province to bridge Pakistan’s 20 to 25 million metric tonne wheat storage gap, reduce post harvest losses, strengthen food security and ensure stable wheat supplies through modern storage infrastructure and on farm silos for farmers.

The ambitious programme is expected to prevent nearly three million metric tonnes of post harvest wheat losses annually and generate an estimated $289 million in additional value while enabling farmers to store their produce safely and secure better market returns.

Director General Food Punjab Amjad Hafeez told Wealth Pakistan that work on establishing modern wheat silos is already underway under the public private partnership model.

He said the initiative would significantly improve long term storage capacity and enhance supply chain efficiency across the province.

He said the government is simultaneously promoting on farm silos to increase farmers’ storage capacity, allowing them to avoid distress sales and retain ownership of their produce until market conditions become favourable.

According to Hafeez, the programme has been designed to address Pakistan’s wheat storage deficit of 20 to 25 million metric tonnes, which has long contributed to post harvest losses and supply chain inefficiencies.

Commenting on wheat stocks, he said Punjab has sufficient reserves to comfortably meet provincial requirements until the end of the current wheat year in April next year.

Punjab produced around 21.91 million metric tonnes of wheat this year against an estimated annual domestic consumption of 16.5 million metric tonnes, leaving a surplus of approximately 5.41 million metric tonnes.

The surplus provides a substantial buffer to ensure uninterrupted wheat supplies, meet inter provincial requirements, maintain market stability and strengthen food security, he added.

“The releases will be carried out in a calibrated and phased manner to ensure a steady supply of wheat to the milling sector.

This approach is intended to maintain adequate flour availability in the market and help keep flour and roti prices stable and affordable for consumers,”Mr  Hafeez said.

He said the Pakistan Agricultural Storage and Services Corporation will also begin dispatching wheat to Punjab this month in line with the province’s supply management strategy to ensure the smooth movement of stocks.

DG food reiterated that the government would not allow unjustified increases in wheat, flour and bread prices, stressing that these essential food items must remain affordable, particularly for low income households.

He warned that strict legal action would be taken against hoarders or anyone attempting to create an artificial shortage of wheat in the market.

Flour millers have welcomed the government’s decision to release wheat from official stocks, expressing optimism that the move will help stabilise flour prices across the province.

Pakistan Flour Mills Association Patron in Chief Asim Ahmad Raza told Wealth Pakistan that the price of the 10 kilogram flour bag has remained in line with the government’s notified rates, while price fluctuations have been limited to the 15 kilogram bag produced from wheat purchased on the open market.

DG Amjad Hafeez expressed hope that the release of wheat from government warehouses would help lower flour prices and eventually bring down the prices of roti and naan for consumers.