IMF consulted before fixing wheat price at Rs 4500 per maund, says Minister

The government consulted the International Monetary Fund (IMF) before fixing the wheat price at Rs4,500 per maund, Federal Minister for National Food Security and Research Rana Tanveer Hussain said on Monday. Addressing a press conference in Islamabad alongside Pakistan Kissan Ittehad President Khalid Mahmood Khokhar, the minister said the national wheat policy had been developed after nearly four decades to safeguard farmers' interests, stabilise the market and ensure national food security. He said the federal government had reached a consensus with provincial governments on the wheat price, adding that the policy would provide farmers with greater price certainty while ensuring a stable supply of the staple crop. The minister announced that the government would maintain strategic wheat reserves of up to six million tonnes during the current year to prevent shortages and ensure uninterrupted supplies. He dismissed concerns about a potential wheat shortage, saying existing stocks were sufficient to meet national demand. Responding to a question, Tanveer said wheat, being a staple food, required an appropriately regulated market to prevent market distortions and protect consumers. He said imported wheat would cost around Rs4,900 per maund, making locally procured wheat a more economical option. The government would prioritise domestic farmers and avoid unnecessary imports, he added. The minister disclosed that more than 1.3 million tonnes of wheat had already been released to provincial governments from Pakistan Agricultural Storage and Services Corporation (PASSCO) stocks. He said arrangements could also be made to import up to 550,000 tonnes, depending on provincial needs and market demand. Attributing the recent rise in wheat prices to artificial market manipulation, Tanveer maintained that sufficient stocks were available across the country. He expressed confidence that prices would return to normal within days and warned that the government would act against speculation, artificial shortages and unjustified price hikes. He said the national wheat policy had been formulated after extensive consultations with provincial governments and stressed that cooperation with provincial administrations and farmers' organisations would continue during its implementation. Tanveer added that the government, under Prime Minister Shehbaz Sharif, was pursuing broader agricultural reforms to boost productivity, lower production costs and strengthen food security. Policies covering seeds, olives and biotechnology had also been developed to modernise the agricultural sector and promote innovation. Emphasising the importance of quality seeds and modern farming technologies, he said their wider adoption was essential to improving crop yields and enhancing farmers' economic prospects. He described agriculture as the backbone of Pakistan's economy, saying sustainable growth in the sector was crucial for economic stability, rural prosperity and long-term food security. The minister also said Pakistan had been more severely affected than other countries by the Middle East crisis, with 80 per cent of its energy import bill exposed to external shocks. He acknowledged an increase in di-ammonium phosphate (DAP) prices but said urea prices remained stable. On sugar prices, Tanveer claimed that retail rates were holding steady at around Rs140 per kilogram. Meanwhile, Khokhar welcomed the decision to fix the wheat price at Rs4,500 per maund and appreciated the consultation with provincial governments. He stressed that farmers needed a predictable and reasonable price for their produce to protect their livelihoods and economic interests.