Punjab May Consider Wheat Imports as Domestic Stocks Decline

Punjab is considering wheat imports after declining domestic supplies and rising flour prices raised concerns over wheat availability. The development comes after government-appointed aggregator Louis Dreyfus Company (LDC) informed the provincial government that it may not be able to fulfil its entire local procurement target under the Private Sector Procurement of Wheat Policy 2026.

 

In a letter to the Punjab Food Department, LDC requested permission to import wheat to cover the shortfall in its procurement commitments. The company also sought exemption from customs duty and lower import-related taxes to make imports commercially viable.

 

LDC was awarded contracts to procure a total of 258,000 metric tonnes (MT) of wheat under the provincial programme. However, it has secured only around 155,000MT from the local market, citing limited availability and tightening supply conditions.

 

According to the company, importing wheat to replace the unprocured local quantity would help ensure uninterrupted supplies and allow it to meet its contractual obligations. Industry sources said all approved aggregators have collectively procured only around 500,000MT so far.

 

If approved, the request could signal a policy shift by allowing private-sector wheat imports to bridge the supply gap. LDC also noted that customs duties and advance income tax significantly increase import costs, affecting the commercial viability of overseas purchases.

 

Punjab food authorities have not yet issued an official response to the proposal.