ACCORDING to media reports, the federal government has decided to increase support prices of wheat and sugarcane significantly with far reaching implications for the common man. The wheat price is likely to be increased from the existing Rs 1300 to 1400 per forty kilograms while the sugarcane support price is expected to be enhanced from the existing Rs 180 to 200 per 40 kg.
It has been reported that the decision has been taken after completion of consultations with the provincial governments and in view of the economic problems being faced by growers. No one would oppose provision of relief to the farming community as this is vital for enhancing agricultural productivity, economic growth and making the country self-sufficient in food items. Pakistan is an agricultural country with fertile land and vast irrigation system with potential to grow enough to not only feed the fast growing local population but also adequate surplus to earn billions of dollars in foreign exchange through exports. But the decision makers must realize that raising procurement price is not the best solution to address woes of the farmers. The procurement prices of wheat and sugarcane are already highest in the region and as a consequence the market prices of wheat flour and sugar are going beyond the reach of the common man. Wheat being staple food of the people of Pakistan and relatively higher sugar consumption habit of the people demand that these commodities should be available to the ordinary citizen at affordable rates. The real problem is rising cost of input and that is where the government ought to focus. The cost of production can be brought down by providing subsidized fertilizers, seeds, pesticides, agricultural implements and tractors. Increase in support price of wheat and sugarcane would push prices of these commodity further higher and this will put unbearable burden on the people. Already, Gallup survey results indicate that a vast majority of Pakistanis consider inflation as the biggest problem of the country and this should not be compounded further.
