Author Recent Posts Rabia Anwaar Latest posts by Rabia Anwaar (see all) U.S. Strategic Influence VS. China’s Economic Engagement: Pakistan’s Choices? – November 15, 2024 26th Constitutional Amendment: Judicial Reforms or Judiciary in shackles? – November 11, 2024 Is Greater Israel Feasible? – November 11, 2024
Food security is core to basic human security; any disruption in the supply chain can cause instability within the country and insecurity among the citizens of Pakistan. Since the inception of Pakistan, agriculture has been the backbone of Pakistan’s economy. Currently, it accounts for nearly 23 percent of total GDP of Pakistan, out of which wheat production contribute 2% of it. The wheat crisis in Pakistan is a complex matter that has serious implications for both food and farmers’ security. As a basic staple crop of the country, any problems arising in wheat production or availability; directly affects the people’s access to this essential product. Farmers who are the basic producers of the wheat are faced by immense pressing challenges such as low yields due to availability of resources, unstable prices, and inadequate support systems. These problems are compounded by such factors as policy deficits, environmental threats, and market dynamics. To overcome this crisis, it is necessary to have a holistic approach that concentrates on raising agricultural yield, strengthening government policy regimes to ensure profit and well-being of citizens and farmers as well as increased access to local markets, flour millers and consumers.
Wheat crisis is not a novel issue in Pakistan however; this time it is surprising as the crisis of wheat is surplus of its production and not the shortage. In the current situation, farmers and traders have a lot of wheat at their disposal, but they are holding it for higher prices. The reason being that this time the coalition government and the Pakistan Agricultural Storage and Services Corporation (PASSCO) failed to buy enough wheat from farmers. When government purchases wheat from framers; it sets indirectly market price of wheat. The failure of government’s purchase from farmers just before the harvest period has caused the actual crisis, which can be exacerbated by climate change conditions and rising temperatures. Resultantly, farmers got a higher price in the market than the rate offered by the government initially. This reflects the mismanagement of government’s decisions and policy failures, the consequences of which are bore by the farmers and local population.
The wheat crisis leads to increased prices for wheat flour, a staple food for the majority of Pakistan’s population. This price rise directly impacts food security, especially for low-income households. According to official data, with nearly 39.4% of Pakistan’s population living below the poverty line, the rise in wheat prices severely affects their purchasing power. Higher food costs mean that these households must allocate a larger portion of their limited income to basic sustenance, reducing their ability to spend on other necessities like healthcare and education. Moreover, the farmers lack storage spaces for surplus wheat production. Their crop yield and harvest period of next season also depends on the previous ones. So, it would not be wrong to say that the part of Pakistan belonging to lower middle class is suffering with the skyrocketing prices but farmers are the ones, who have been hit the most and called for nationwide protests by the farmer community. This dynamic increases food insecurity and increases complexities in their daily life survival and meeting basic needs.
Another major challenge that Pakistan usually suffers is smuggling and hoarding of wheat. When traders and middlemen hoard wheat, they create artificial shortages in the market. This manipulation reduces the availability of wheat, causing prices to spike for consumers. However, farmers often do not benefit from these higher prices because the hoarding usually happens after the farmers have sold their produce. Consequently, farmers receive lower prices for their wheat during harvest season when the market is flooded, and the prices are driven down by the surplus supply before hoarding starts. Furthermore,
Smuggling wheat to neighboring countries like Afghanistan reduces the domestic supply, leading to wheat shortages and market distortions. This illegal trade contributes to price fluctuations, making it difficult for farmers to predict market conditions and plan their production and sales strategies effectively.
For averting any crisis in Pakistan, discouraging imports while encouraging domestic production is the remedy to many economic and financial problems of Pakistan. Secondly, policy regime of government should be strengthened. It should take full responsibility to investigate the import of wheat when already it was available in surplus in the country. For that reason, the foremost strategy that the government of Pakistan should imply is the ban of imported wheat. Only through this way, farmers can be satisfied and stops countrywide protests which can cause instability in Pakistan. Another effective strategy; the food departments like PASSCO should purchase directly from farmers at a price suitable for farmers and food authorities. By addressing both immediate and long-term challenges, these measures can help stabilize the wheat market, ensure fair prices for farmers, and improve overall food security in Pakistan.
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