Thursday, June 24

Future of Wheat Prices in Pakistan for 2021 and 2022

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In Pakistan, wheat is harvested from the end of April till May. The harvesting has started, the approximate wheat production in Pakistan this year is expected to reach 26 million tons. While according to the population, the requirement is about 29 million tons. The harvesting is still in process. But more shreds of evidence say Pakistan will face a shortfall of 3million tons of wheat this year. The overall production unit of 2021 was still more than usual. Normally, Pakistan produces an average of 20-24 tons of Wheat every year. The Production rate this year is very appreciable.

Wheat Prices In Pakistan For 2021 And 2022

In Pakistan, the wheat prices are always a matter of debate by our ministers. The problems of its production rate, the disastrous changes in production, and consumption rate is still a conflict in Pakistan. The wheat for sale price in Pakistan depends on its production rate. For the year 2021, the federal government fixed the wheat price 1800 per 40kg. The prices are fixed to make sure the equal availability of wheat flour. The wheat flour price is fixed in a specific commodity to avoid any kind of conflict.

The prices this year were more than last year’s wheat pricing. Last year’s rate was around 1400 per 40kg, which was later increased on the demand of farmers. The farmers always demand to increase wheat prices in order to compensate for their investment in the crops. This year there was a conflict too. When the federal government set the prices to 1650 per 40 kg, farmers got angry. Moreover, in order to address the problems related to wheat production, it was necessary to ponder again over the matter. prime minister Imran Khan addressed a conference on the matter. after reviewing the matter, he got to the point of increasing the prices. The price of wheat was increased from 1650 to 1800pkr per 40kg. the news resource Dawn collected from the minister for National food security and research, Syed Fakhr Imam.

Due to the variation in the amount of wheat produced and the population ratio, the government has decided to import 3 million tons of wheat. This amount will fulfill the wheat requirement of Pakistan. And the government is hoping not to face any calamity in terms of wheat shortage this year. To ensure the full incentives to the farmers who grow wheat, the increase in pricing was the need of the hour.

The Increased Support Price of Wheat in the Sindh Market.

The support price of wheat in Sindh this year was fixed to 2000pkr per 40kg. this pricing is a massive difference from the price of wheat fixed by the federal government. The chairman of Sindh, Chahdury Muhammad Yousaf proclaimed that it was the biggest difference of the decade in the pricing. This distortion in the pricing scheme was due to the support price of wheat by the Sindh government.

Mill owners are also facing difficulties in this situation. They are having conflict with the federal government to maintain a uniform pricing scale. This variation has caused loss to the mill owners in Karachi specifically. That was confirmed by the report Published in DAWN that the federal government has fixed the prices to 2650pkr per 40 kg for the year 2021. Whereas, the Sindh government has increased the pricing to 2000pkr per 40kg. this has incredibly increased the prices of 100kg bag to 5000pkr. While according to the federal government policy, it was supposed to be 4100pkr per 100kg of wheat.

Wheat Pricing In Different Provinces.

Wheat for sale price in Pakistan for the year 2021 to 2022 has become a source of conflict among its provinces. The federal government did its part by fixing the wheat prices. After the Sindh government disobeyed the scheme, the matter is more critical now.  There is a difference in the price of the commodity in different provinces. The actual pricing set by the federal government is 1650pkr per 40kg. whereas, in Punjab, it is expected to be 1800pkr per 40kg. The Sindh government increased the pricing up to 2000pkr per 40kg. This is the deviation of the decade.

The president of Sindh Growers Alliance, Nawab Zubair Talpur claimed that the pricing was increased on the basis of last years’ experience. He said that the traders last year took over the market. The flour pricing was very minimum. It was sold 1000pkr per 40kg or in some areas even less than. This is because the federal government failed to fix any procurement center in Sindh. As a result, the activity of traders was not checked properly.  It is stated that the flour price is expected to increase to 100pkr per kg. which is a very harsh step toward the consumers. Poor consumers are unable to buy the flour. This is a matter of serious consideration.

Though the scheme strongly condemns the rights of poor people, the PFMA Sindh chief exclaimed it was done for the sake of mills. He said that the flour price in Sindh is less than that of Punjab. It was assured that the flour price will not exceed up to 62pkr per kg bag, even for the finely ground flour. The price is 5pkr cheaper than that of Punjab. The crop yield record of the previous year has shown maximum productivity. This year the yield approximately matched the requirement of consumers. Still, there was not seen any leniency in the pricing for the poor consumers. The policy made was to relieve the mill owners, but the consumers are not seeking any relief.  Chief claimed that this policy will ensure the uniform pricing of the flour throughout.

The fluctuations in the prices are a great conflict; still unresolvable. Different prices of wheat in different provinces of Pakistan which are increasing and decreasing abruptly have put the consumers in much trouble. Provinces are disobeying the rules made by the federal government and are setting up their own prices that leads to problems. Viewing these problems and some others it is predicted that the prices of wheat in Pakistan will be increasing in the coming years.

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