Wheat shortage, prices up !

Pakistan! an agricultural country, where about 70% of  population is concerned with agriculture sector, there is enough resources & land to produce wheat more then the total population demand. but unfortunately it often seems the shortage of wheat at various parts of the country. there are so many reasons involved in it. usually flour prices goes up when the supply of wheat to the floor mills decreased. this situation often arises when large amount of wheat has been smuggled to afghanistan because afghanistan depends on the NWFP(pakistan) market for its supplies. nowadays the situation of wheat market is worse for buyers, the price of flour is Rs 450 per 20kg bag which was available at Rs 270 before two months. this crises ultimately tends to decrease the production capacity of many other items in confectionery & medicines where Volcano Vaporizer & Vapir technology are used. the flour mills owners are now left with two options, either to stop their operations because of limited supply of wheat, or purchase the commodity from open market at higher rates.

Apart from wheat exports, due to legal and illegal foreign traded it is expected that by end of current year, the prices reaches to the record peak. Interestingly, there is no bar on export of flour to Afghanistan, no permit is required from any of the official agencies, except a nominal customs duty at the pak-afghan border. i believe now it is necessary to revise wheat exports policy every year & government is required to make sure & hold enough stock of wheat at home market to curb expected wheat crises in the country.

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December 12th, 2007 | Business, pakistan affairs

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