Wheat in sharp focus

EDITORIAL (March 03 2003) : The last meeting of the Economic Co-ordination Committee of the Cabinet (ECC) was marked, among other things, by its understandable focus on the next wheat crop. Wheat sowing is reported to have been completed but in a slightly smaller area, as compared to the previous year; it had to be so for a number of reasons.

For although the country has achieved self-sufficiency in wheat, besides having an exportable surplus, not all the problems that have been long plaguing this important segment of agriculture have yet been taken due care of.

On the contrary, some new dimensions have been added to its predicament, in the wake of surplus output over the recent years, particularly the difficulties faced in its export contrary to popular expectations. However, first things first. Under the obtaining circumstances, the ECC meeting discussed the wheat support price policy in view of its basic importance.

It decided to evolve an effective mechanism to synchronise the policy structure so as to ensure proportionate passing of the gains of self-sufficiency on to the growers and other stakeholders, presumably including the flour millers and the exporters.

Towards that end, the government would be providing credit facilities, besides fixing the deadline for procurement, along with adequate storage arrangements to ensure that the quality of procured wheat remained intact.

As for ensuring that the growers get Rs 300 per maund as decided earlier by the Cabinet, the ECC assigned the task to the provincial governments and Pasco.

The overall concern for various aspects of the wheat situation as displayed by ECC is evidently owed to completion of sowing of the new crop, thereby adding urgency to making of advance preparations for proper disposal of the yield before the harvesting time sets in.

It will be recalled that many a time in the past, the growers who had been lured into producing wheat in larger quantities on the promise of attractively higher prices, were later disappointed by much lower prices offered at the time of procurement.

Similarly, there had been complaints by flourmills of inadequate supply of wheat, often followed by the shortage of flour, to the detriment of low income consumers particularly in the rural and suburban areas.

Now that serious note has been taken of the urgency of addressing the woes of the growers, who have a pivotal role in the country's agriculture-dominated economy, one would be looking forward to strict implementation of the policies and programmes to make the difference felt.

Again, in view of the increased importance of wheat in the economy, as resulting from attainment of autarky, no effort for sustained growth of production can prove rewarding except by boosting its export. It will be recalled that efforts made towards that end so far have left a great deal to be desired.

This, of course, was attributable to a number of factors, including lack of proper comprehension of the basic essentials of international trading in wheat, on the one hand, and flawed approach of producing quick results without putting in place the needed pre-requisites, on the other.

For one thing, it was our inability to match our level of wheat prices and quality in the potential markets even with that of the neighbouring countries. Associated with these was also the lack of proper arrangements for storage and prompt fulfilment of orders from the buyers.

Reference may be made here also to the reluctance in assigning wheat export solely to the private sector where it should really belong. Although the private sector has not been barred, the TCP has been allowed a role, which for understandable reasons has complicated matters in its own way.

Now that ECC has specifically directed the Food and Agriculture Ministry to encourage export of wheat through a strategy to be worked out by the committee on wheat exports, one hopes that all the essential prerequisites will be put in place to ensure the desired results on the export front under a scientifically drawn plan.