ISLAMABAD: A recent revelation has brought to light a brewing conflict between the federal and provincial governments, posing a serious threat to the agricultural sector.

A high-level inquiry committee, established by Prime Minister Shehbaz Sharif, uncovered a letter written by the Punjab Secretary of Food to the Secretary of National Food Security.

Dated March 25, 2024, the letter from the Punjab government urged an immediate halt to wheat imports totaling 2.6 million tonnes. Despite this directive, the federal government went ahead with importing a significant 8.5 million tons of wheat.

The Punjab Food Secretary’s letter argued against the ongoing wheat imports, citing the already substantial figure of 3.4 million tons imported and the potential surplus it could create in the market. It also emphasized Punjab’s significant wheat stocks, currently at 2.2 million tons, which could worsen the surplus issue if not managed promptly, adversely affecting local farmers.

Expanding wheat production in Punjab from 16 million to 17.4 million acres, with production estimates rising from 21.3 million to 24.2 million tonnes, faces disruption due to the influx of imported wheat. This disruption threatens to upset the delicate balance of supply and demand, potentially leading to a financial crisis for farmers.

The letter also highlighted the contrast with Punjab’s wheat procurement efforts last year, which amounted to 4 million tons. However, due to the influx of imported wheat, Punjab may only release 1.8 million tons of its wheat stocks, raising concerns about market stability and farmer welfare.

Additionally, Punjab’s substantial wheat stock, valued at Rs 80 billion, presents a financial burden exacerbated by accumulating interest. This underscores the urgent need for decisive action to alleviate economic strain on the provincial government and ensure sustainable agricultural practices.