The federal government has reached an agreement with the International Monetary Fund (IMF) to end the minimum support price (MSP) system for wheat, reported 24NewsHD TV channel.
After the agreement, the minimum support price (MSP) of wheat would not be announced for 2025-26. 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.