LAHORE, Feb 18: Punjab will allow the free flow of wheat during the procurement season this year, as desired by the federal government, to help avert shortages in other parts of the country.

“All provinces have agreed to allow free movement of wheat,” federal Information Minister Sherry Rehman said after a federal cabinet meeting at the Governor’s House on Wednesday.

Asked if free movement of wheat would continue throughout the year, she said for the time being it would hold good for the procurement period.

This will be for the fourth time since 1990 that Punjab has agreed not to stop inter-provincial movement of wheat.

Ms Rehman said the cabinet had decided to ensure that farmers got government-fixed procurement price of Rs950 per 40kg, adding that all provinces would maintain a uniform wheat release price for flour mills to avoid market distortions.

The wheat production is expected to be around 25 million tons against the domestic requirement of about 23 million tons.

As the commodity’s global prices have declined to below Rs700 per 40kg, farmers fear prices in the domestic market would crash because the private sector is unlikely to pay farmers the minimum support price.

“The government has set a wheat procurement target of 6.5 million tonne … and we intend to achieve it (to prevent the market from crashing because of the expected surplus crop and falling global prices),” the minister said.

The cabinet also asked the provinces and PASSCO to increase the number of procurement centres to facilitate growers.

“The federal government will also set up a committee to monitor wheat procurement and ensure that the growers get fair price,” she said.

“The prime minister will also hold a meeting with the provincial chief ministers to review the situation. The government is taking measures for ensuring support price for wheat to avoid a market crash like the one that hit the rice crop last summer.