At last after doing public relation exercise about plenty stock of wheat in the country its shortages have been realised. Prime Minister Imran Khan has, in principle, gave approval for import of 300,000 tonnes of wheat for which 60 percent exemption in regulatory duty shall be given. The federal government is also abolishing the 5 percent levy of advance income tax on wheat import and reduction in of quota of 200,000 tonnes to 100,000 tonnes which was earlier allocated to Utility Stores Corporation for providing wheat flour to people at subsidized rates at its outlets.
People across the country have been hit hard by unprecedented hike in the price of wheat flour and ultimate acute shortage of this commodity of daily consumption. The crisis has been looming for the past seven months but no appropriate supply and stocks augmenting measures were taken. On the contrary, the shortages were frequently blamed on hoarders and profiteers, which proved by and large, incorrect.
From 2001 till last year, wheat has been an exportable commodity with exports of .5 to 1 million tonnes annually. During 2002-07 large quantities of fine quality wheat flour exported to Afghanistan the surplus built up stock there used to be exported by Afghan exporters to Central Asian States and the commodity was even found on the shopping malls in Ukraine. The delay in the announcement of support price for wheat for the past several years and abnormal increase in production cost have resulted in reduced output. The support price of wheat announced by the present government is a drop in the ocean as it will not persuade growers to increase areas under cultivation.
