PRIME Minister Imran Khan has hinted at the possibility of raising support price of wheat from the next season besides issuing directions for formulation of short, medium and long term policies to ensure food security in view of rapidly increasing population and reduction in the cultivable area due to various reasons. He has also called for use of modern technology and latest agricultural techniques to increase the production of wheat, which is staple food of the people of Pakistan.
The thinking of the Prime Minister is obviously influenced by the prevailing shortage of the commodity as a result of which the prices of wheat flour have gone beyond the absorbing capacity of the common man and the Government had to take a decision about import of 1.5 million tons of wheat to improve supply situation. No one would differ with the PM when he calls for concrete planning to ensure food security and use of modern technology as food shortage in an agricultural country like Pakistan is shameful. However, the prevailing crisis of wheat is not directly related to lack of incentives for farmers as the present Government increased the support price first from Rs 1,300/- per 40 kilograms to 1,350 and then Rs 1,400/-.
The crisis was triggered by irrational decision of exporting 5.5 million tons of wheat without waiting for the new crop that helps calculate availability of stocks and requirements for domestic consumption. Similarly, there are also reports of hoarding and smuggling of both wheat and wheat flour and the authorities have not so far been able to curb the menace, otherwise there was hardly any justification or explanation for shortage of wheat immediately after harvesting of the crop and procurement drives. Therefore, any proposal to jack up wheat support price would serve no other purpose than making the commodity dearer for the common man. If provision of incentives or facilitation of growers is the purpose, this can also be done by reducing the cost of inputs. As for food security, there is wide scope for increasing both per acre yield and the area under cultivation if better quality seeds and modern technology is used. We believe that instead of beating about the bush, the Government should think innovatively and wiser counselling in this regard has come from the Competition Commission of Pakistan (CCP).
In a policy note, it has asked the Government to address the issue of distortion in the wheat sector that is leading to shortage of the commodity and provision of substandard wheat flour to the consumers. The CCP has recommended withdrawal of the permission to flour mills to extract 35% bran and other products from wheat as this will result in immediate availability of 1.5 million tons of wheat flour, which is equivalent to the figures approved for import of the commodity. The Commission has emphasized the need to enhance supply of wheat flour through production of whole wheat flour against the quota issued at subsidized rates by the Government. The recommendations are surely in the interest of the consumers who are forced to consume substandard flour as millers often extract more maida and fine flour than the permissible limits to make unfair profit. They are also guilty of compromising the quality of flour to the detriment of the health of the citizens through the loathsome practice of increasing moisture content to increase weight of wheat flour. The issue also speaks volumes about corrupt practices by mafias of different sorts and lack of proper vigilance and checking by the official agencies.
There are food inspectors but majority of them is allegedly interested to mint money than caring about health of the people and reporting of illegal practices by millers. The CCP has also pointed out another criminal activity going on unchecked – the flour mills are receiving wheat from the government at Rs 1,475/- per 40 kg and selling it in the market at Rs 2,400 instead of grinding to make flour. We have been emphasizing in these columns that wheat and sugar crises can be effectively tackled if the Government activates its administrative machinery and findings and recommendations of the CCP have confirmed this beyond any doubt. It is hoped that the Prime Minister, who frequently holds meetings on prices and availability of essential items, would consider saner recommendations of the Commission in the overall interest of the people.
