ISLAMABAD: At a time when private sector has already done half of the job for wheat import, the Trading Corporation of Pakistan (TCP) has entered in the scene by issuing an international tender for import of 1.5 million tons of commodity. TCP’s entry will not do anything good. Firstly, it will result in discouraging the private sector for wheat import. Secondly, its one huge tender of 1.5 million tons import will push-up the international market and it will cost more on import. One wonders what compelled TCP to issue an international tender and that too for import of 1.5 million tons when the private sector had already booked 0.6 million tons of wheat and imported commodity will land in Pakistan in next one and half months and gap in demand and supply will shrunk to below one million tons. As a result of a big gap of 1.5 million tons in production and demand, flour rates had started to increase right from the middle of harvesting seasons in March-April this year. Rise in wheat flour prices hit pro poor segment of the society badly and its heat was felt by the government at top level. The flour prices of Rs 850 of a 20 kg bag jumped up to Rs 1050 in the open market during the last four months. This trend is still continuing. Aware of the shortfall and its possible impact on the consumers, the government invited the private sector in June last to import the commodity to ensure that adequate stocks remain available in the market to avoid flour shortage in the country. The private sector responded well and it submitted a grantee to the ministry of National Food and Security to import required quantity of wheat of 1.5 million tons in given timeframe. To keep its commitment, the private sector as of August 8, 2020 confirmed orders of 0.6 million tons of wheat import. Ukrain is a main source for the private sector to import the commodity. Requesting anonymity, a Karachi- based importer told NEWSMAN, that the private sector ordered wheat import for $ 230 to $ 238 per ton, but now after TCP’s tender global market will go up and add substantially on import of wheat.
