Pakistan approves sale of 500 thsd tons of wheat at discounted prices

Pakistan’s Economic Coordination Committee (ECC) has approved the sale of 500,000 metric tons of wheat from state reserves at reduced starting prices after a previous auction failed to attract sufficient bids. The move is aimed at cutting storage costs and managing surplus grain stocks amid rising warehousing and financing expenses.

The wheat is held by the state-run Pakistan Agricultural Storage and Services Corporation (PASSCO). The sale will be conducted through competitive bidding on a First-In-First-Out (FIFO) basis. The revised reserve prices have been set at 4,150 rupees ($14.85) per 40 kg for locally procured wheat and 3,800 rupees ($13.60) per 40 kg for imported wheat. An earlier attempt to offload the stocks at higher prices collapsed due to weak buyer participation.

For the global market, the decision carries broader implications. Pakistan is one of Asia’s major wheat consumers, and an aggressive stock release could reduce its import demand in the coming months. This may add competitive pressure on exporters from the Black Sea region, the EU, and Australia, particularly at a time of ample global supply.

Domestically, the measure could influence flour price dynamics and improve liquidity for millers and traders. If the bidding process proves competitive, the government will be able to ease fiscal pressure and partially reduce the burden of maintaining large public reserves.

Tags: prices, Pakistan, wheat