Major wheat deficit looming

[ziaulislam]

Pakistan is likely to face three million tons wheat deficit next year as the country’s estimated consumption is 29 million whereas production will be around 26 million tons.


The projected consumption of 29 million tons includes buffer stocks of one million tons of wheat, 1.2 million tons for seed and 0.3 million for poultry feed.


The issue of wheat deficit came under discussion at a meeting of National Assembly Standing Committee on Commerce, headed by Syed Naveed Qamar.


During discussion on import of wheat through Trading Corporation of Pakistan (TCP), Secretary Commerce Sualeh Ahmad Faruqi confirmed that wheat deficit had also been projected for next year.


Chairman TCP Riaz Memon informed the committee that the government had imported 2.165 million tons of which 1.6 million tons was imported by TCP and 0.465 million tons by Passco. He further stated that 30 bulk vessels of TCP arrived from October 2020 to March 2021 and not a single vessel went into demurrage.


According to him, average imported wheat at port was Rs 45.6 per kg, adding signing of commercial agreements with recipient agencies helped in efficient cargo clearance from port by recipient agencies and timely payment of dues i.e. 91 percent amount was recovered as on March 3, 2021. The total invoice amount was Rs 81.64 billion, of which Rs 74.71 billion is received while Rs 7.28 billion is receivable.


He said the next consignment of 0.3 million tons wheat would arrive in August 2021 to avoid glut in the market and ensure that prices of domestic wheat did not plummet. This was confirmed by Secretary Commerce who assured the committee that there would be no glut in the market due to imported wheat as its arrival has been delayed till August.


The committee members criticised Punjab government for revising down Minimum Support Price (MSP) from Rs 1800 to Rs 1650/40 kg. This price will certainly encourage smuggling of wheat to Sindh where price is Rs 2100/40 kg. Private sector will also make all out efforts to procure wheat despite ban on procurement by the provincial government. According to Article 151 of the Constitution, it’s a common market, which means goods cannot be restricted.


After the standing committee’s meeting, Syed Naveed Qamar lamented the projected wheat shortage next year, adding that wheat production in the country was going down whereas import was on the rise. He further stated that support price of wheat fixed by the government was unrealistic. Sindh has announced minimum support price of Rs 2000 /40 kg whereas Punjab revised it down - from Rs 1800 to 1650/40 kg.


“Who will sell his wheat at Rs 1650/40 kg, when the price of imported wheat is Rs 2500/40 kg,” he queried.


Naveed Qamar contended that continuation of import of wheat was in the interest of mafias, adding that expensive wheat was being imported in the name of price control.


“We are extending benefit to farmers of other countries but are not ready to give subsidy to Pakistani farmers,” he said.

Major wheat deficit looming

ISLAMABAD: Pakistan is likely to face three million tons wheat deficit next year as the country’s estimated...

www.brecorder.com

Last year projected wheat deficit was 1.5 million tonns but we imported 2.6 million tonn wheat. This year projected wheat deficit is 3 million tonns means double than previous year.

ask a farmer family like me why there is deficit?

it was uneconomical to grow at support prices govt was providing during 2012-2018 and got even worse with devaluation in 2018

PMLN supports stem from punjab center which is urban area or high yield zero watered punjab where yields may still be doable but else where the current price is too low

farming is still not really mechanized to make it profitable with such low support price

agree!!! for past few years floor mill owners & mafia have been hoarding wheat...large quantity is 'smuggled' to Afghanistan...personally knew 2 parties involved in such practice

why is smuggling to Afghanistan bad? ??? is it bad for farmers to want to sell it a bigger price..??


why are we fucking the farmers by artificially creating a glut...

if we continue to do so farmers will stop growing

you may have fun for one season but afterwards you will have deficit..and guess what happened now


solution for food security is increase productivity not creating artificial gluts
same is true for poultry vegetables etc..we punish the farmers by creating artificial glut, when farmers stop growing we then cry

if you want to squeez someone, squeez the middle man not farmers
pakistan as whole has people who work 180 degree ..

we produce gluts to price control
we print notes to create GDP growth

then we cry if we end up with low productivity and high current account deficit


its like shooting your self and asking why i am bleeding

 

[Norwegian]

ask a farmer family like me why there is deficit?

it was uneconomical to grow at support prices govt was providing during 2012-2018 and got even worse with devaluation in 2018

PMLN supports stem from punjab center which is urban area or high yield zero watered punjab where yields may still be doable but else where the current price is too low

farming is still not really mechanized to make it profitable with such low support price

why is smuggling to Afghanistan bad? ??? is it bad for farmers to want to sell it a bigger price..??


why are we fucking the farmers by artificially creating a glut...

if we continue to do so farmers will stop growing

you may have fun for one season but afterwards you will have deficit..and guess what happened now


solution for food security is increase productivity not creating artificial gluts
same is true for poultry vegetables etc..we punish the farmers by creating artificial glut, when farmers stop growing we then cry

if you want to squeez someone, squeez the middle man not farmers
pakistan as whole has people who work 180 degree ..

we produce gluts to price control
we print notes to create GDP growth

then we cry if we end up with low productivity and high current account deficit


its like shooting your self and asking why i am bleeding

 

[muhammadhafeezmalik]

The whole problem of agriculture in Pakistan can be summarised in these three quotes.



In a free market you sell for the price you can get. Rs1650 is better than zero. If it makes you a profit, it's good business, if it doesn't, consider selling to someone else, or growing something else. What is stopping them from selling their wheat in the markets? The higher imported wheat prices are because that's the cost of the free market outside of Pakistan.

Farmers would not grow wheat, they will grow tobacco or maize instead.

The only failure of government here is that they don't create easy access for farmers to the market. Of course that won't change whilst the bottlenecks sit in parliament, the senate, the judiciary, and every other arm of the state.

Wheat is staple food for most Pakistanis. Every government is bound to provide staple food at affordable prices, almost every government provide guaranty to farmers to grow staple food which has little or no profit. Developed countries including the United States have also introduced different subsidized schemes to provide financial and technological inputs to farmers that help improve their quality of life and help ensure adequate farm produce.

Why should agriculture be subsidised? Why can't these people run their business efficiently themselves. If they are incapable they should be upskilled through agricultural colleges, not subsidised by the state.

The basic purpose of agricultural subsidies is to stabilizing food prices, food production, guaranteeing farmer's basic incomes, and strengthening the agricultural sector of the economy. Agriculture subsidies can affect the prices, demand, supply and productivity of agriculture products.

Govt is not responsible for growing food, farmers are.

Farmers are not responsible for providing food , Government is:


The Constitution of the Islamic Republic of Pakistan has directive principles that contribute to the realization of the right to adequate food.

CONSTITUTIONAL RECOGNITIONS OF THE RIGHT TO ADEQUATE FOOD


Article 38: Promotion of social and economic well-being of the people -
“The State shall -
(a) secure the well-being of the people, irrespective of sex, caste, creed or race, by raising their standard of living by preventing the concentration of wealth and means of production and distribution in the hands of a few to the detriment of general interest and by ensuring equitable adjustment of rights between employers and employees, and landlords and tenants;
(b) provide for all citizens, within the available resources of the country, facilities for work and adequate livelihood with reasonable rest and leisure;


(c) provide for all persons employed in the service of Pakistan or otherwise, social security by compulsory social insurance or other means;
(d) provide all basic necessities of life, such as food, clothing, housing, education and medical relief, for all such citizens, irrespective of sex, caste, creed or race, as are permanently or temporarily unable to earn their livelihood on account of infirmity, sickness or unemployment.


(e) reduce disparity in the income and earnings of individuals, including persons in the various classes of the service of Pakistan; f. eliminate riba as early as possible and;


(g) ensure that the shares of the Provinces in all Federal services, including autonomous bodies and corporations established by, or under the control of, the Federal Government, shall be secured and any omission in the allocation of the shares of the Provinces in the past shall be rectified."

Pakistan has signed various treaties and instruments by which an international pressure is created on the state to ensure fundamental rights to the citizens; the right to food is one of them.

Some of treaties are as under:

Universal Declaration of Human Rights (UDHR) – 1948

Article 25

1. Everyone has the right to a standard of living adequate for the health and well-being of himself and of his family, including food, clothing, housing and medical care and necessary social services, and the right to security in the event of unemployment, sickness, disability, widowhood, old age or other lack of livelihood in circumstances beyond his control.

International Covenant on Economic, Social and Cultural Rights (ICESCR) – 1966

1. The States Parties to the present Covenant recognize the right of everyone to an adequate standard of living for himself and his family, including adequate food, clothing and housing, and to the continuous improvement of living conditions. The States Parties will take appropriate steps to ensure the realization of this right, recognizing to this effect the essential importance of international co-operation based on free consent.

Convention on the Elimination of all forms of Discrimination Against Women (CEDAW) – 1979

Article 12
2. Notwithstanding the provisions of paragraph I of this article, States Parties shall ensure to women appropriate services in connection with pregnancy, confinement and the post-natal period, granting free services where necessary, as well as adequate nutrition during pregnancy and lactation.
The Islamic Republic of Pakistan has become a State party to the International Covenant on Economic, Social and Cultural Rights (ICESCR) in 2008 by way of ratification.

Convention on the Rights of the Child (CRC) – 1989

Article 24
1. States Parties recognize the right of the child to the enjoyment of the highest attainable standard of health and to facilities for the treatment of illness and rehabilitation of health. States Parties shall strive to ensure that no child is deprived of his or her right of access to such health care services.
2. States Parties shall pursue full implementation of this right and, in particular, shall take appropriate measures:
(c) To combat disease and malnutrition, including within the framework of primary health care, through, inter alia, the application of readily available technology and through the provision of adequate nutritious foods and clean drinking-water, taking into consideration the dangers and risks of environmental pollution;

Convention on the Rights of Persons with Disabilities (CRPD) – 2006

Article 28 - Adequate standard of living and social protection
1. States Parties recognize the right of persons with disabilities to an adequate standard of living for themselves and their families, including adequate food, clothing and housing, and to the continuous improvement of living conditions, and shall take appropriate steps to safeguard and promote the realization of this right without discrimination on the basis of disability.

 

[Norwegian]

Farmers are not responsible for providing food , Government is:

Govt can't buy food for its citizens for 6 billion dollars when its exports are only 25 billion dollars

 

[muhammadhafeezmalik]

Food deficit started during Khota Biryani govt
View attachment 726046

Food deficit started during your favorite Khota Biryani govt

Food deficit started during your favorite Khota Biryani govt, Patwari

So how did your favorite PMLN govt got record deficits in food trade? Why did they fail to plan country's future during their term?

According to Biryanis everything good is Pmlns fault and everything wrong is PTIs fault

Pakistan stop exporting essential food items like wheat, sugar etc to cater the domestic population during our favorite Khota Biryani govt so the food trade balance gone into negative but food prices were stable and so as access to food.

Pakistan starts exporting essential food items like wheat, sugar etc to minimise food trade balance and ignore to cater the domestic population during our favorite Khota Leader govt ,but the food trade balance gone into negetive with ever great margins also food prices are not stable and so as access to food.

 

[Norwegian]

Pakistan stop exporting essential food items like wheat, sugar etc to cater the domestic population during our favorite Khota Biryani govt so the food trade balance gone into negative but food prices were stable and so as access to food.

Pakistan starts exporting essential food items like wheat, sugar etc to minimise food trade balance and ignore to cater the domestic population during our favorite Khota Leader govt ,but the food trade balance gone into negetive with ever great margins also food prices are not stable and so as access to food.

https://twitter.com/x/status/1373143733118599169

Yet you get most expensive price despite subsidies

 

[muhammadhafeezmalik]

https://twitter.com/x/status/1373143733118599169

Yet you get most expensive price despite subsidies

Average price of Wheat in India is PKR 55-60
Average price of Wheat in Pakistan is PKR 55-60

In fact, in both countries, dependency on agriculture sector is the main source of income generation and to get basic amenities of life. However, besides significant contribution of agriculture sector in national GDP, the majority of the farmers in both countries are not in a position to secure key inputs from their own sources.

While, financial markets in these countries are imperfect and are likely to affect decision-making behavior of economic agents, especially small landholders to invest on advanced technologies. Thus agriculture production remains below than actual level. So the cost of production is higher than the countries you have mentioned. Those countries have large, equipped with modern technology farms so more yield per hector.

In this situation, subsidies on agricultural inputs (fertilizer, plant protection, improved seeds,
irrigation etc.) have great importance.

 

[Pandora]

Considering PMLN didnt increase support price for farmers and PTI increasing a meager 100Rs per ton wheat what else people were expecting here. Recent 1800 Rs support price by PTI govt is something that was due for last 10 years considering wheat price in international market is much higher hence the smuggling. Couple that with sindh where wheat stocks vanish like Bilawal Bhutos ding dong you have your answer of wheat shortage. Current support price will help increase our wheat yield by at least 25% which will not only be enough for local consumption but help create a buffer stock if not exported.

Pakistanis like entitled brats dont know how lucky they are to have wheat available at price 20-30% below international market rate. Ask people who live in foreign countries who buy 5kg bag of wheat for as much as 15 dollars almost 3 dollars per kg making it around 400Rs per kg here in Australia alone.

Australia 400 PER kG
Pakistan 55-60 per kg seriously what more do you want? We have dangars here who even in off season want goods at same prices as crop season rather than eating seasonal products. We have no shortage of food when our eating habits are not that of entitled brats.