Wheat import

The federal government efforts to control flour prices have seen the removal of restrictions on wheat imports by the private sector and ending of a 60% tariff on imports. Prime Minister Imran Khan also withdrew two other import duties on wheat, which added up to 8%. Domestically, the government has also lifted the ban on inter-provincial transportation of grain. A new crackdown on smuggling and hoarding will also begin. The government hopes that allowing imports will disincentivise hoarding and help keep prices down, even though it claims it does not expect any shortages of flour or wheat. Incidentally, public sector wheat procurement is also up.

The news is a welcome example of foresight. Even though wheat output this year was expected to be in-line with the average for the last five years, according to independent analysts, there was a bumper crop last year, which is not going to be repeated this year. Besides, the impact of the locust outbreak and Covid-19 on agriculture output is still uncertain, meaning that prudence will likely insulate the country from any supply shocks, and the government from criticism if something does go wrong. In addition, this would also protect against a repeat of the wheat crisis in January.

After vehemently denying there was a crisis at all, the government was forced to investigate. In April, the PTI was left egg faced as the inquiry commission not only showed that there was indeed a major problem, but that the PTI-led Government of Punjab, its departments, and others with links to the halls of power were to blame. Although much action still needs to be taken on that report and the sugar crisis inquiry, a start is a start. Hopefully, the effort to better regulate and monitor essential agriculture supply chains will continue, and those who gamed the system will be punished. This really is also where the government can build. At the time, PM Imran said, “Previous political leaderships because of their vested interests and compromises lacked moral courage to order and release such reports.”

Will the ruling party have the moral courage to punish all of those responsible for the crises?

Published in The Express Tribune, June 10^th, 2020.

Like Opinion & Editorial on Facebook, follow @ETOpEd on Twitter to receive all updates on all our daily pieces.