Govt plans import of Russian wheat as floods damaged crop

By Staff Reporter

ISLAMABAD: The government on Tuesday planned to import one million tons of Russian wheat to build strategic stocks as unprecedented flash floods caused by historic monsoon rains have washed away major crops, including wheat.

“The TCP (Trading Corporation of Pakistan) may be directed to arrange a further quantity of 1 million tons of imported wheat in addition to the remaining 600,000 million metric tons,” said a government statement, issued after the meeting of the Economic Coordination Committee of the Cabinet. “The import of specified wheat (Russian wheat) may be allowed through G2G (government-to-government) as well as open tendering for approval at the lowest price.”

The government will keep 2 million tons as strategic reserves of wheat, including a quantity of 80,000 tons on account of the SAARC Food Bank.

“In the wake of recent rainfall and flood damages ensuing financial issues of farmers for the next wheat sowing season, rising local wheat prices and hoarding and smuggling issues, the aforementioned quantity is insufficient,” the statement said. “Therefore, in order to ensure wheat availability across the border and to stabilize local wheat prices, it was proposed that the quantum of wheat strategic reserves may be retained at the level of 2 million tons.”

Minister for Finance Miftah Ismail chaired the ECC meeting.

An import of 800,000 tons of wheat is also allowed to the private sector “with the proviso that subsidy shall not be provided for such imports”.

The government will also consider importing vegetables from arch-rival India to mitigate floods fallout, Minister Ismail said a day earlier, as food prices have risen significantly. “We can consider importing vegetables from India,” the minister told a local TV channel. Turkey and Iran could also be other options, he said.

The ECC also granted approval of Rs103.125 billion as Technical Supplementary Grant (TSG) for Benazir Income Support Program to disburse Rs25,000 among households in flood-affected areas.

The Ministry of Poverty alleviation and social safety submitted a summary for emergency cash assistance to affectees of flash floods 2022.

“Keeping in view that BISP has to release its regular quarter tranche in the first week of September 2022 to meet the IMF deadline and considering the budgetary requirements of the cash grant of flood-affected areas, it is proposed that Rs103.125 billion may be released as TSG enabling BISP to carry out its disbursement operation,” the statement said.

“It was also added that the Finance Division will consult with BISP to discuss the financial implications and required modalities. Furthermore, the government will ask the provinces to provide their share in the relief for flood affectees.”