Rising food prices

Adviser on Finance to the PM Dr Hafeez Shaikh and Minister of Railways Sheikh Rashid Ahmed have taken notice of the rising prices of basic food items like wheat and wheat flour. At a meeting of the Economic Coordination Committee of the cabinet on Sept 18 they contested the figures presented by the Ministry of National Food Security and Research about the prices of wheat flour. The railway minister said lately the prices of wheat flour had increased by Rs70-100 per 40kg. The adviser on finance said he had received reports that prices of basic food items were on the rise in the federal capital. The ECC has asked the provinces to do stocktaking of the wheat stock in the country to ascertain how much is available in government warehouses and how much has been “eaten by rodents.” Another minister quoted a Sindh minister as having said that “400,000 tons of wheat has been lost to rodents.” The level of wastage and its admission by a minister show that all is not well with the ministry entrusted with the task of ensuring food security. Dr Shaikh and Sheikh Rashid said the ban on export of wheat and wheat flour should stay. Wheat stock has depleted a little but the available stock was sufficient to meet the country’s needs. The Punjab government is selling wheat to flour mills at Rs1,375 per 40kg. Some flour mills are reportedly buying more than their grinding capacity, and are selling the extra wheat in the open market.

The adviser expressed annoyance that the government was giving subsidy on wheat and gas but the prices of roti (bread) have not been reduced. Tandoors are not being charged for gas at the current rate. Being a trained economist Dr Shaikh should know the importance of keeping food prices under control. Controlling prices, inflation and income is essential for economic management. However, currently the country is facing a double-digit inflation. Vulgar display of wealth and want go side by side as usual. 


Published in The Express Tribune, September 20^th, 2019.