- After sugar, the wheat crisis
Despite the resolve shown and directives issued by the government, the prices of palatable and safe flour remain high. The wheat was procured from the growers at the rate of Rs1,400 per 40 kg but now the commodity is selling at the rate of Rs 1800 to Rs 2000 per 40 kg in the market. The losers are the tillers, and all those who consume wheat products, particularly the roti. The winners are those the Prime Minister calls the mafia and hoarders. Instead of the flour price coming down anytime soon, there are signs that show it could continue to rise over the year.
What Federal Food Security Minister Fakhar Imam told the National Assembly was unexpected from an educated man and an agriculturist. He wondered how more than six million tons of wheat purchased from farmers after the harvest two months ago had just “vanished” in the market. Was he simply feigning ignorance?
In January the ECC approved the import of 0.3 million tons of wheat amidst an unprecedented price hike. The lobbies of the vested interest saw to it that there was no import. In March the PM warned the profiteers that the government would take strong action against them if they created an artificial shortage of wheat. Among other measures he threatened to make use of the party’s tiger force, originally formed to counter the coronavirus. This apparently failed to discourage the wheat hoarders who knew the PM would not go beyond sermonising. Over the last three months of wheat prices going north he had not gone beyond making ineffective harangues.
For many, the government’s incompetence is the most important factor behind the wheat shortage. It failed to achieve its wheat procurement target with PASSCO and the KP administration being the major laggards. The federal government decided last month to import of 1.5 million tons of wheat. It took however another month for the notification to be issued, thus providing hoarders a field day. The businessmen are now waiting for international prices of wheat to go down or the government agreeing to buy costly wheat to sell it on subsidized rates before they start importing.
As long as the government remains undecided, the price of flour will go on rising. Meanwhile, Pakistan’s wheat will continue to be smuggled to neigbouring countries. Are those in the government incompetent or complicit, or both?
