Wheat policy of the government has been under discussion for the past few weeks and has been analyzed by some reputed writers of established integrity and professional know-how. Their conclusions tend to be critical of the manner of handling of this all important crop by the government. One cannot disagree with these individuals who possess insight into and expertise of the sector.
Wheat has many salient aspects. Two of them are vital in a basic way. A) It is the main food crop of the country, and B) while there is no exact figure of the percentage of the population involved in wheat cultivation, one can safely say that the entire rural population of Punjab and Sindh is an integral component of the crop.
This is not to say that the rural areas of the NWFP and Balochistan have a lesser or less notable role in the wheat sector but to emphasize the deep involvement (and dependence) of entire rural Sindh and Punjab in wheat. Otherwise, wheat is as much part of the lives of the other two provinces as Punjab and Sindh.
While wheat is the need of the entire country, it is lifeline for the crop’s growers. Economically, they rely on it more than on any other crop they cultivate because its market is assured and they are certain to receive a certain price for their crop. Unfortunately, this price can be, indeed often is not commensurate with their investment and labour but all said and done, the risk in wheat production is marginal in comparison with other crops.
Wheat cultivation is also less affected by weather conditions and pests - it is not that it is immune to these and other hazards of the agriculture sector but only to underline that wheat is hardy than cotton or rice.
It certainly requires vigilance and hard work from growers from sowing to harvesting and marketing but, let us say, the crop inflicts fewer worries on growers.
The farmer’s labour is as demanding and intense in wheat as in any other crop and a minimum investment is required to be made. Do farmers receive adequate compensation for their pains? The answer is in resounding, emphatic. And this is not due to any recent development but a condition ever since one can remember.
Expecting equitable earnings is out of question because in the prevailing dispensation, justice for small farmers is denied. This is not new or from some package of reforms dished out by the present regime but inevitable outcome of the gang up of feudal elements with military and civil elite.
As the membership of this club is greatly in demand and increasingly sought by businessmen and industrialists, chances of equitable treatment for growers are turning more and more remote with time.
Such injustice is incurable and current conditions are according it greater permanence. It is either the gang up of these elements or just inherent callousness of the governments whose legitimacy is not universally accepted or administrations lacking authority of independent decision making that the support price of wheat is being considered for a freeze.
The present rate, fixed late last year, is Rs415 per bag, raised by Rs15 for a bag 40kg; was an ‘incentive for farmers’, according to the government. Wheat was not an expensive commodity till a few year back but there were fears that farmers would not find it an economically feasible crop for long if they were not given a fair deal in the form of a higher rate for their produce.
The government of Nawaz Sharif had raised the price per bag of 40kg but the military setup under General Musharraf was advised to increase it further to ensure that farmers were attracted and tried to contribute their best to produce a big crop. Fixed price was fixed at Rs300. The result was a truly bumper crop, the maximum wheat yield in Pakistan’s history. Pakistan produced enough to meet domestic requirements and even export the commodity that was regularly imported to feed the populace.
The support price was reviewed upward every year since then and reached Rs499 per 40kg unit by last year. This year, an ‘incentive’ of Rs15 was given. The raise is, however, to be seen in comparison with the cost of production.
While the private sector and farmers could place that at any figure, the government calculates it at Rs428.06 per 40kg off wheat in Punjab and at Rs406.29 for the same weight in Sindh. The officially worked out production cost in Punjab is thus Rs13 above the support price while farmers of Sindh are fortunate that they are not required to subsidize the crop and indeed have the chance of earning nearly Rs9 from each bag of 40kg. What kind of message or incentive is being sent to the grower?
The federal government officials who have worked out this cost of production have done an elaborate exercise and made sure that no area of investment was ignored. However, it may not be the correct appraisal of the farmer’s sweat and toil in some cases.
Marketing cost has been placed at Rs15 per 40kg bag. It would be higher for farmers at a bigger than average distance from the market and for those whose produce is not high. In some aspects of production, the cost of labour has not been considered.
However, even if the officially worked out cost of production is taken as authentic in every detail - and one would tend to say that although the task has been accomplished fairly accurately, the cost has to be higher by a few rupees in actuality because there are so many imponderables and intangibles in real life that cannot be accorded a material value.
Indeed no figure can honestly quantify the cost of contribution of the farmer who may have to irrigate his crop at night in freezing winter or arrange protective measures for the crop during rain or hail storm. The sum total of the government’s wheat price policy is quite simple but totally unfair and none of the governmental arguments for freezing support price is comprehensible. The present support price is less than the cost of production. This can only result in pushing small farmers out of the field, forcing him to sell his land and look for alternate means for earning a living.
The government could not be unaware of the repercussions of its policies. But apparently, it finds itself unable to be fair to those citizens who feed the populace and make the economy tick. One wishes there was an explanation.






























