Pakistan strikes deal with IMF to end wheat support price

The federal government has reached an agreement with the International Monetary Fund (IMF) to end the minimum support price (MSP) system for wheat, ARY News reported on Wednesday.

After the agreement, the minimum support price (MSP) of wheat would not be announced for 2025-26, sources said.

Ministry of National Food Security and Research directed the provinces to submit their wheat food security suggestions based on their population.

The ministry is also pondering closing down the state-owned company Pakistan Agricultural Storage & Services Corporation Ltd (PASSCO) due to the irregularities in wheat distribution and finance.

The decision may have a significant impact on the wheat rates and market, as PASSCO has a storage capacity of 1.2 million metric tonne and plays a crucial role in supplying wheat to the provinces based on their requirements.

Notably, the government previously used to procure wheat from farmers after announcing a minimum support price and then supply it to the flour mills, however, the abolishment of the support price was the key demand of the IMF under the bailout package.

Meanwhile, last month the Karachi administration announced new prices of wheat flour (Atta) in the city, effective from December 17.

According to a notification issued by Commissioner Karachi Syed Hassan Naqvi, the wholesale market price of fine wheat flour has been fixed at Rs 92 per kilogram (kg) while its ex-flour mill price is set at Rs 92 per kg. The fine wheat flour will be available at Rs 99 per kg in the retail market.

Similarly, the price of chakki flour is fixed at Rs 115 per kilogram.

Meanwhile, the retail price of regular wheat flour (2½ No. Atta) has been fixed at Rs 94 per kg while its wholesale rate is set at Rs 90 per kg. wheat flour price.

Tags: agreement, International Monetary Fund, flour mills, Minimum Support Price, wheat, food security