Pakistan cereal association says wheat imports could cut prices by up to PKR 20 per kilogram

The Cereal Association of Pakistan (CAP) has urged the federal government to immediately allow the import of 4 million metric tons of wheat, warning that delays could trigger supply shortages and drive domestic prices even higher.

In a letter to Federal Minister for National Food Security and Research Rana Tanveer Hussain, the association thanked the minister for consulting industry stakeholders on the country's wheat situation and praised his efforts to safeguard food security.

The association said wheat prices are once again showing a strong upward trend and warned of emerging signs of another supply crunch. It urged the government to adopt an open and transparent import policy to help stabilize the market.

CAP proposed a two-phase import plan, calling for the immediate approval of 2 million metric tons of wheat imports, followed by another 2 million metric tons depending on market conditions and domestic supply requirements.

The association said swift approval would allow Pakistan to benefit from lower international wheat prices as harvests begin in the Black Sea region and South America during July and August, reducing import costs and ultimately providing relief to consumers.

According to the letter, the government's previous decision to facilitate wheat imports proved successful, with the private sector importing about 3.7 million metric tons of wheat. The additional supply helped reduce domestic prices and improve market availability.

CAP warned that any delay in approving imports could worsen shortages, push prices higher and increase hardship for consumers, particularly low-income households.

The association urged the government to ensure that any import policy remains open, transparent and non-discriminatory, allowing equal participation by all eligible importers. It said broader participation would prevent market concentration, encourage competition and help maintain stable wheat supplies.

The letter said Karachi Port and Port Qasim currently have the capacity to handle around 550,000 metric tons of wheat imports, making them the most practical entry points for immediate shipments. While Gwadar Port has long-term potential, the association said operational and labor-related constraints currently limit its effectiveness for large-scale wheat imports.

CAP estimated that immediate imports could reduce wheat prices in Karachi by PKR 15 to PKR 20 per kilogram, while prices in Punjab and Khyber Pakhtunkhwa could fall by around PKR 10 per kilogram, providing direct relief to millions of consumers.

The association also cited previous experience, noting that about 65 importers participated in the last wheat import cycle under an open policy, resulting in stronger competition, improved market availability and greater price stability.

Concluding the letter, CAP appealed to the minister to approve wheat imports "in the larger national interest," saying prompt action would help stabilize prices, ensure uninterrupted wheat supplies and protect consumers from further inflationary pressures.