Punjab to go for early wheat procurement

Published
1

LAHORE: Punjab is preparing for an early start of wheat procurement drive — maybe in the first week of April — as the crop has matured early on the back of a rise in temperature in the absence of rains in March.

According to food department officials, they have already dispatched gunny bags to 13 districts of the south, where crop matures earlier than the northern part. Some carryover bags were already there and fresh ones have been sent.

Traditionally, the food department starts distributing gunny bags after April 15.

The department has set a target of 3.5 million tonnes and may stick to it. “Even if it has to increase, it may not be much,” explains one of the officials, saying that each tonne carries a huge financial cost. It is carrying over half a million tonnes, and with the addition of 3.5m tonnes, the total stock for next year would be four million tonnes.

The department is hoping for the purchase of 2.2m tonnes by the millers and total availability would thus be 6.2m tonnes for the next year.

About the wheat crop situation, the department says that the first survey has indicated a better production position. In January, when the urea crisis deepened and its usage worsened, Punjab lowered its production expectations to 18.8m tonnes. By the end of February, it was hoping for 20m tonnes.

These fears also factored in predictions of excessive rains during March, making Punjab planners a worried lot. However, the first survey of the crop now shows that the situation may not be as bad as feared earlier. The province is now expecting to end up somewhere close to last year’s production of 20.9m tonnes.

Both these factors — rise in March temperatures and relatively better size — have pushed Punjab to prepare for an early procurement drive and the department is already in action. It is replenishing the gunny bags stocks but the final decision (the day to start actual procurement) would be taken by the deputy commissioner (DC) concerned according to local conditions.

The department will distribute the district targets and ensure gunny bags and the deputy commissioner will do the rest.

The millers, however, are worried about casting DCs in the role of in-charge of the drive. “It means administrative measures will be taken to complete the target,” says Khaliq Arshad, a miller from the city.

The current market price is higher than the official rate and it makes administrative steps necessary to get to the targets.

It also means the millers would have to wait for the purchase till the food department completes its target.

Published in Dawn, March 24th, 2022

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Parliament’s place
Updated 11 Oct, 2026

Parliament’s place

In 2015, the parliament had decided to “maintain neutrality in the Yemen conflict so as to be able to play a proactive diplomatic role to end the crisis”.
Disturbing the peace
11 Oct, 2026

Disturbing the peace

THIS year’s Nobel Peace Prize is well-earned. The winner, South African jurist Dr Navi Pillay, has had an...
A voice in care
10 Oct, 2026

A voice in care

WORLD Mental Health Day this year carries a compelling message. The theme, ‘Lived experiences heard: real voices,...
Midterm break
Updated 10 Oct, 2026

Midterm break

Both the US and Israel need to halt their destructive misadventures in the Middle East.
American barbarism
Updated 10 Oct, 2026

American barbarism

WITH the spectre of defeat in the upcoming midterm elections looming large over the Trump administration, the...