Farmers oppose ban on wheat movement

Say it will lead to high prices in some parts, cause losses to growers in other areas

KARACHI:

Farmers have expressed concern over the order issued by the Sindh government that banned the inter-district movement of wheat in some areas of the province.

They highlighted that it would affect the wheat supply chain, which may result in high prices in some parts while causing a loss to wheat growers in other areas.

In Sanghar and Matiari districts, the district food controllers have issued letters for stopping the inter-district movement of wheat.

Resultantly, the price of wheat fell from Rs2,200 to Rs1,800 per 40 kg and the rate was likely to drop further if immediate corrective measures were not taken, read a letter written by the Sindh Abadgar Board (SAB) to provincial Minister for Food Hari Ram Kishori.

“The step taken by the government to fix the procurement price at Rs2,000 seems to be going in vain,” said SAB Senior Vice President Nawaz Shah while speaking to The Express Tribune.

“It is of immense concern for the growers in Sindh that once again a strategy is being adopted which is detrimental to the cause of growers and consumers.” The government of Sindh had set a target of 1.3 million tons for wheat procurement, which was 32% of the total expected production of 4 million tons in the province, he said.

“Harvesting of wheat started on March 1 and is in full swing, but not a single purchasing centre has been opened, and the growers do not know where to sell.”

Seemingly, such administrative measures were encouraging hoarders to purchase wheat at much lower prices than the procurement price, he added.

“In our view, measures should have been taken to let wheat reach areas where flour is being sold at Rs75 per kg, like in Karachi, to help deflate prices,” Shah said.

Last year, the wheat growers sold wheat at Rs35 per kg, while prices of flour never came below Rs62 per kg. While the government is not able to regulate wheat stocks, the administrative measures taken to artificially bring down prices benefit the middlemen. SAB urged the government to immediately lift the ban on inter-district movement of wheat.

“Purchasing centres should be opened forthwith before wheat goes into the hands of hoarders,” the SAB office-bearer stated.

Authorities must regulate total stocks of wheat so that consumers were provided with the commodity at affordable rates, he said. “Devising a strategy for the wheat procurement process to support primary producers and consumers is necessary.”

Published in The Express Tribune, March 23^rd, 2021.

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