Worsening Atta crisis

Over the past few years the trends of sharp rise in the prices of essential consumer goods has continued but supply augmenting and price control measures are not in sight. There has been tremendous increase in the price of wheat flour, rice, cooking oil and sugar during the past few months.
The intensity of food inflation has become unbearable for the people belonging to the fixed income groups and lower middle class. But the Government is absolutely oblivious of the hardship faced by the people to make both ends meet.
The shortage of Atta was created by liberal export of wheat. The problem was further confounded by hoarders and profiteers who withheld the supply of their stock to the market. Of the food commodities the price of Atta has shown an enormous increase and the price of 20 kg bag has reached an all time high level. The acute scarcity of this commodity is beyond comprehension if the government's claim of bumper wheat crop is to be believed.
The former Prime Minister Shaukat Aziz, while giving his assessment about the performance of agriculture sector, put the production of figure of wheat as 23.5 million tons. But then what were the factors which produced the Atta crises in the country.
The major factors which contributed to this impasse appear to be unwise export policy of wheat and lust of big stockists for earning more profits. The Government in its zeal for achieving the ambitious export targets allowed the export of wheat and Atta and ignored the domestic demand for this commodity.
Half a million ton of wheat was exported to India. Besides this huge quantities of wheat and Atta were exported to other neighbouring countries with the result that the market of Iran, Afghanistan and Central Asia were flooded with fine quality Atta. But on the other hand people in the country have to wait in long queues to get wheat flour at comparatively cheaper rates from utility store.
The export spree also badly affected the wheat procurement programme of the Government during the harvesting season this year. Pakistan Agriculture Storage Corporation (PASCO) could purchase 1.2 million tons of wheat against the target of 1.3 million tons.
The Government of Punjab decided to procure 4 million tons but it could hardly obtain 2.5 million tons for its stock. Likewise, Government of Sindh could fetch half a million tons against its requirement of 1 million ton. The shortfall in wheat procurement was caused by allowing its exports without taking into account the extent of domestic requirement and determining the quantum of surplus.
The Atta crisis is going to get worse in the next few months if duty free import of wheat is not allowed immediately to overcome the prevailing shortage and replenish the reserve stock in the Government storages to ensure the smooth supply of wheat in the market.