Wheat production target set to be missed: report

ISLAMABAD: The wheat production target of 27 million tons is all set to be missed in the wake of heavy rains across the country in the last one month, including the one on the weekend, The News reported on Monday.

The latest estimates suggest that the wheat output will slash down by 1 to 1.5 million tons, and will be standing around 25.5 to 26 million tons against the fixed target of 27 million tons.

This possible reduction in wheat production will have far-reaching negative impact on the overall GDP growth of the country for the outgoing fiscal year 2019-20. 

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Wheat procurement necessary to avert crisis

With possible wheat production of 25.5 to 26 million tons against the fixed target of 27 million tons, timely procurement of 8.25 million tons is necessary to avert the wheat crisis in the upcoming fiscal year 2020-21.

Pakistan’s total consumption requirement on domestic front along with neighboring Afghanistan stands at over 2 million tons per month, so there is a need to ensure strict vigilance to curb any bid of smuggling.

“All the four provinces and PASSCO will have to ensure procurement of wheat in order to foil attempt of hoarders to exploit the future situation by creating artificial shortages,” a top official told The News.

Also read: How the wheat crisis unfolded across Pakistan

Sindh procures 50% of target

The wheat procurement target was set at 8.25 million tons including 1.8 million tons for PASSCO, 4.5 million tons (Punjab), 1.4 million tons (Sindh), one million tons (Balochistan) and 0.45 million tons (Kyhbyer Pakhtunkhwa) at support price of 1,400 per 40 kg.

Earlier, there were reports that Sindh had so far procured 0.4 million tons wheat in this ongoing season. However, when contacted, Sindh Minister for Labour Saeed Ghani on Sunday said that the provincial government had so far procured more than 50% of its envisaged target. 

When asked, he explained that the procurement of wheat was underway and so far they had procured more than 0.7 million tons of wheat against the set target of 1.4 million tons for Sindh. He said that the procurement of wheat would continue till June and the desired target would be achieved.

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Rains cause problems in procurement

On the other hand, Punjab also claimed to have procured around 30% of wheat against the desired target. However, the sources said that the recent rains in certain areas caused problems because wet wheat was not procured because its weight had increased.

The reduction in wheat production will have far-reaching negative impact on the real GDP growth of the country. The GDP growth had already become a hot potato in the country after the COVID-19 pandemic because all international financial institutions such as the IMF and WB projected shrinking of growth for the outgoing fiscal year. 

However, the Planning Commission has so far estimated that the GDP growth would remain positive and it would be over 1%. Earlier, the Planning Commission was suggesting positive GDP growth close to 2%.

Originally published in The News