Wheat prices may shoot up further

ISLAMABAD While independent analysts are pointing at constantly soaring food prices in the international market with a forecast of the run-up to continue for a decade, adequate wheat management in Pakistan still remains a far cry. The ban on inter-provincial trade of wheat during the last procurement season has created disparity of stock available with the provinces. Now although the trade is open yet the main stockholder, the Punjab, has fixed quota for other provinces. According to well-placed sources, vague handling of the available, though surplus, stock at least with Punjab as against disparities and difficulties in other provinces in the wake of international food scenario might lead to recurrence of the crisis. It is perhaps because of the impact of the international trends of rising food prices that also witnessed soaring tendency in the domestic prices of wheat and flour. It merits mentioning here that there are common fears of food shortage and lack of affordability in many countries around the world. As per the report in Wall Street Journal, the prices of Illinois corn and soybeans rose 40 percent and 75 percent respectively in a year. Kansas wheat is also up by 70 percent or more and a growing number of economists and agribusiness executives think the run-ups could last as long as a decade, raising the cost of all kinds of food. According to the sources, piling up of stocks by both the provincial governments the government itself is hoarding daily-use items in an apparent bid to deepen the shortage so that the stocks could go on higher prices. It is relevant to mention here that in the era of the last government wheat had to be imported from abroad because local wheat stock couldnt meet peoples requirements. This was not only because of underproduction but also due to black marketing, smuggling and exceeding wheat export owing to higher prices they get from other nations. When contacted, Agriculture Ministry Spokesman said that flour was available on Rs30 or Rs32 per kg in Punjab. It might be at Rs35 per kg in Pakistan Occupied Kashmir but above that it is not possible, he added. To a question, he said increase in price was not possible in coming two year. Shortage was issue in last year but now its stable all around the country. According to reports received through reliable sources, the governments relevant outfits were storing massive quantity of wheat even in makeshift godowns in Southern Punjab as was evident in the photographs arranged by TheNation. They agreed that there was lack of adequate storage capacity with the PASCO, but insisted that the state outfit was stocking wheat more than the allocated quota of regular as well as buffer stock in the region. The sources feared that it would create shortage in the NWFP and Balochistan, as the rising prices and acute shortages of atta (wheat) are clearly distressing to the people. Ban on inter-provincial trade was lifted two year ago and there is also no shortage of wheat at all, said Agriculture Ministry spokesman, when contacted by TheNation. Despite the fact the government has surplus wheat with 6.2 million tons in its stocks the agriculture analysts feared that adequate wheat management in Pakistan still remained a goal little achieved.

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