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Independent observers have described the huge disparity of wheat prices between two federating units- Sindh and Punjab- as incomprehensible and against all norms of justice.
These sources maintained that prevailing market price indicates that the people of Sindh, the major tax paying and revenue generating province, is paying Rs 150 on every bag of wheat of 100 kg extra compared to prevailing price in Punjab.
In Sindh, the open market price quoted on Wednesday was Rs 1185 per 100 kg bag while in retail market the price of wheat flour was Rs 13.625 per kg or Rs 1090 per 80 kg bag, whereas the wheat price in the Punjab open market was quoted at Rs 1035 for 100 kg.
Punjab is the only wheat surplus province according to FCA. The total wheat production of Punjab was estimated at around 15.85 million tones against total consumption calculated at the rate of 124 kg per person comes to about 10.416 million showing a surplus of 5.444 million tones yet Punjab imposed ban on inter-provincial movement of wheat causing price hike in deficit federating units of the country.
These sources maintained that agriculture in Pakistan has been subjected to a high degree of government influence and intervention. In view of the importance of wheat, the staple food of the country, there has been strong government involvement in this sector during the past 54 years in order to facilitate the procurement from the surplus production areas.
But unfortunately, despite a constitutional obligation the government has failed to take notice of Punjab government decision, which had threatened the harmony of the country.
The supply of wheat by Punjab to deficit provinces through Passco even at a higher rate had no impact on wheat/flour prices in the deficit provinces. This indicates that the government has neither achieved food security nor the protection of the common people from paying the higher price for wheat /flour.
When contacted Sindh Food and Agriculture Minister Arif Mustafa Jatoi told Business Recorder that efforts are being made to bring price of wheat flour to less than Rs 13 per Kg.
But it seems to be distant possibility as at present the price of wheat, despite a subsidy of Rs 5 billion for importing one million tones of wheat, the people of Sindh are paying higher price for their primary staple food.

Copyright Business Recorder, 2004

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