ISLAMABAD: In a recent development, a crucial piece of evidence has emerged shedding light on a brewing conflict between the federal and provincial governments, posing a significant threat to the agricultural sector, ARY News reported on Sunday.
The high-level inquiry committee, formed by Prime Minister Shehbaz Sharif, in its investigation, found a letter which was penned by the Secretary of Food, Punjab, addressing the Secretary of National Food Security.
On March 25, 2024, the Punjab government took a decisive step by addressing a letter to the Secretary of National Food Security, urging the immediate halt of wheat imports totaling 2.6 million tonnes.
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Despite the letter, prohibiting the Secretary of National Food Security from procuring wheat, the federal government proceeded to import a staggering 8.5 million tons of wheat.
The Punjab’s Food Secretary in the letter opposes the continuation of wheat imports, citing the already alarming import figure of 3.4 million tons and the potential surplus it would create in the market.
Moreover, the letter underscores Punjab’s substantial wheat stocks, currently standing at 2.2 million tons, a figure that could exacerbate the surplus dilemma if not addressed promptly, which can negatively impact the local farmers.
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With Punjab’s wheat production area expanding from 16 million to 17.4 million acres and production estimates soaring from 21.3 million to 24.2 million tonnes, the influx of imported wheat threatens to disrupt the delicate balance of supply and demand, plunging farmers into a financial crisis.
In the letter, the food secretary highlighted the stark contrast with Punjab’s wheat procurement efforts last year amounted to 4 million tons. Yet, due to the inundation of imported wheat in the market, the release of Punjab’s wheat stocks may be restricted to a mere 1.8 million tons, exacerbating concerns over market equilibrium and farmer welfare.
Furthermore, Punjab’s substantial wheat stock, valued at Rs 80 billion, poses a financial burden compounded by accruing interest.
This underscores the urgent need for decisive action to mitigate the economic strain on the provincial government and ensure sustainable agricultural practices.
