Wheat worth Rs 56 billion exported

Pakistan exported wheat worth Rs 56 billion in 2011 to Bangladesh, Dubai, Iran and Afghanistan, officials said. According to officials of the newly created Ministry of Food Security last year, the government permitted Pakistani traders to export 2 million tons of wheat, adding that Pakistani wheat was exported at $330-$335 per ton.
The commodity at present is being traded at $250-258 per ton or Rs 928 per 40 kg. Further, wheat export for Pakistan would only be possible if price in the global market touches $300-350 per ton or Rs 1260 per 40 kg. Beside wheat export, Pakistan also imported over Rs 417 billion food items.
In 2010-11, the country produced over 25 million tons wheat, 24 million tons in 2009-10 and about nearly 23 million tons in 2008-09, while it is expecting 25 million tons in 2011-12. Out of expected 25 million tons wheat, Punjab will produce 19 million ton, KP 1.5 million tons, Balochistan 0.8 m tons and Sindh will come up with 3.8 million tons.
The country still has 4.7 million tons carryforward surplus wheat stocks, of which 0.5 million tons are being consumed domestically per month and till February and March, surplus stocks will be 1.7 million tons, which can be replaced with new crop and exported at suitable time as international wheat prices have declined over the past few months.
Officials said that wheat cultivation has started in some areas of Pakistan, especially in Sindh and southern Punjab, but in the absence of any food and agriculture department at federal level, farmers are still waiting for wheat support price, which, last time, was announced in 2008 at Rs 950 per 40 kg.
According to officials of Punjab crop reporting centre, per acre yield in the province had reached 30.85 maunds in 2011 while last year it produced 19,041,000 (19.041 million) tons from an area of 16534000 acres, which was .5 million acres less than 2010.
Commenting on the wheat support price, an official of Crop Reporting Centre Punjab said that the provinces and farmers are still looking towards federal government that it would announce new wheat support price for the next season, but it has not given any signal in this direction, which can not only reduce the area of cultivation but also per acre yield. The government is not going to increase wheat support price this year, the official added.
The farmers annually bring 21.5 million acres land under wheat cultivation. If the government announces wheat price at Rs 1150 per 40 kg, production can be increased by 2 to 2.5 million tons as it would enable farmers to bear increased inputs cost, which, during last three years have increased by manifold.
Dr Qadir Bux Baloch, former Agricultural Development Commissioner of Pakistan, said that due to floods in Sindh, wheat production would be affected this year and production from lower Sindh would decline by 20-30 percent against last year's. But the Chairman Agri Forum Pakistan, Ibrahim Mughal, said that because of these floods, "we can expect a better crop from Sindh". He said 1.5 million acres, where wheat can be cultivated, is affected by these floods, of which 1.2 million acres possibly can be cultivated with better output due to better moisture level in the soil and fertility.
Mughal said that wheat production can fall due to mismanagement. Wheat seed, saved by agriculturists at their homes, has been destroyed by floods and heavy rains. If Sindh government provides free of cost seeds to farmers on time, a bumper wheat crop is expected. He said that Pakistani farmers are getting much lower price of their crop as compared to the cost of production, which stands at Rs 905.50 per 40kg, while government announced wheat support price is Rs 950 per 40kg.
Farmers and agriculturists urged the government that if it wants to see the country food secure, wheat support price should be Rs 1130 per 40 kg. They said why farmers will cultivate wheat if they have to bear losses instead of taking profit from the crop. During last three years, wheat prices increased 46 percent from Rs 650 per 40kg to Rs 950 per 40kg, but cost of production has increased by 100-300 percent. Urea prices increased 140 percent from 740 to Rs 1800 per 50kg bag.
DAP prices increased 281.81 percent from Rs 1100 to Rs 4200 per 50kg bag. Pesticide prices increased 140.90percent from Rs 110 to Rs 265 per bottle. Electricity prices per unit increased 116.6percent from Rs 3 to Rs 6.5 per unit for agriculture sector. Diesel prices increased by 30.55percent from Rs 72 to Rs 94 per litre and seed prices increased by 90percent from Rs 1000 per 50kg bag to Rs 1900 per 50kg bag.
"If we compare Indian yield, wheat prices and cost of production with Pakistan then figures speaks louder than voice. Urea price in India is equal to Rs 600 Pakistani rupees per 50kg bag, DAP price is equal to 1160 Pak rupees per bag and diesel prices are equal to 74 Pak rupees per litre and after all these inputs their buying price from farmer is equal to 1000 Pak rupees per maund.
"India is providing 812 billion rupees as subsidy to agricultural sector. Per acre yield from Indian Punjab is 43 maund. Indian Agricultural Babu is taking just 13000 salary and providing 43 maund/acre yield and ours is taking 83719 rupees and providing only 30 maund/acre." Nabi Bux General Secretary, Sindh Chamber of Agriculture, said that if Pakistan's farmers are increasing yield by 1 maund per acre they can generate revenue of 20 billion rupees from the crop and it is possible to increase per acre yield by 10 maunds per acre by better management, marketing and providing inputs at proper time.
Last year, seeds which produced best results were Shufq 2006, Ufq 2002, AARI 2011 and Sahar 2006, but Sahar 2006 got diseases later due to rains and temperature. It can also provide better results this year in areas of less rain fall level. Punjab, which is producing 80 percent wheat, has got 14-34 percent less urea this year and Sindh has got 28-32 percent more as compared to last year, which can also affect per acre yield from Punjab because 93 percent farmers have agricultural lands less than 21.5 acres and have limited resources, so they will not be able to buy Urea incase of a shortfall and react in shape of price shoot up which will reduce their yield.
If the government provides fertiliser to them, seed, and other inputs on time, then per acre yield can be increased in just only two years. Wheat production can also be increased by increasing the use of seed which provides result of 75-80 maund/acre in research because when it will be cultivated in field, it can give result up to 40-50 maund/acre. Currently usage of certified seed in Pakistan is just 10-15 percent, the usage must have to be between 30 and 40 percent to get better yield.
Total use of urea in Agricultural sector is 130 million bags, of which 40-45 million bags are used for wheat; 35 million bags of DAP are being used, of which 20 million bags are used for wheat crop. Yield can be increased by increasing the fertiliser, which contains maximum phosphorus, which is DAP. Price for imported urea has been announced by the government at Rs 1300 per 50 kg bag but unfortunately not a single bag is delivered at this price to farmer as growers are purchasing 50kg urea bag at Rs 1800.
Mughal, accusing the Ministry of Industries, said that the bigwigs of the ministry are supplying urea to selected/favourite dealers and are receiving Rs 200-300 per 50kg bag commission, while officers at National Fertiliser Marketing Limited (NFML) are taking 'Nazrana' of Rs 150-200 per 50kg bag.