Pakistan’s claim to fame is its being 7th largest wheat and rice producing country in the world. It has the capacity to become number one if it introduces some farming sector reforms including an end to large, unviable and unmanageable land holdings. It has probably, in this time and age, the biggest and oldest feudal system kept alive in the honor of colonial era when these lands were granted in return for loyalty. Yet, its masses are forced to buy wheat and flour at Rs. 28-31 per kg from the market. This wheat is homegrown and is expensive at this scale. Imagine what would happen if the wheat were to be imported?
Nothing… The wheat would have been much cheaper if it were to be imported. Bloomberg has reported that Egypt, the world’s biggest wheat importer, bought 120,000 metric tons of Russian wheat at a tender today, the country’s General Authority for Supply Commodities Vice Chairman Nomani Nomani said in Cairo. The authority, also known as GASC, bought 60,000 metric tons from Venus at $165 per ton and another 60,000 metric tons from Aston at the same price. This come to Rs. 14 per kg as against Rs. 31 being sold in the domestic market. Then why not import the wheat?
Consider another question…if our farmers were to export their wheat, what would they get? Certainly not as much as they are getting from the domestic customers. The best thing would be to export the wheat and then see the prices. They would certainly come down as the exporters would not get what they are getting in the local market.