Wheat season: Down the same old path

The fields of Sindh are turning to that shade of gold that farmers cherish so much. Wheat harvest season is almost upon us. Before long the hands that have toiled for months to nurture these crops will carry their produce to markets, eyeing lucrative returns. Boosting these hopes of earning a pretty penny, the provincial government decided on Tuesday, to raise the wheat support price from Rs.950 per maund to Rs.1,050 per maund. The decision to increase the support price has been taken in cognisance of rising input costs for agriculturists, chief among which is the mushrooming cost of fertilisers. Government officials tout that this policy of offering an attractive support price is reaping good results. The Food and Agriculture Organisation (FAO) expects the countrys total wheat production to tower beyond 24 million tons this year. Yet somewhere in this rosy (or wheaty) picture, something is amiss. It is true that the cost of inputs has risen dramatically in recent months, so an increase in the support price appears well warranted. However, any inching up in this guaranteed price translates into higher prices for retail consumers. It is equally disturbing to note that despite a sizeable bumper crop, the countrys prospects of exporting the staple item are limited considering the fact that local wheat prices are already dearer than those being offered by competitors. According to market participants, Pakistans exportable wheat is priced around $310 per ton, compared to Indias average price of $270 per ton and Ukraines average price tag of $250 per ton. Given the fact that wheat is the staple food of the country, perhaps the lack of export opportunities may not have been a huge blow, as these stocks may be held as strategic reserves. That is of course if the country actually had the requisite infrastructure in place in the form of silos, warehouses and transport links between farms and markets. Sadly, that is not the case. In fact just like previous governments, the current government has also largely failed to develop any form of actionable policy initiatives on a large scale that could propel the countrys agri-base into the modern era. The efficacy of a support price cannot be denied. Yet this cannot remain the only token of support for a sector that remains the backbone of the economy. In order to increase yields and improve their international competitiveness on a sustained basis, farmers need to be made aware of better farming techniques. They need fertilisers and seeds, access to credit and to markets. They need storage facilities, transportation support and better irrigation. The support price is well and good but it is high time for a more enabling environment for the agriculture sector, instead of the same old legacy of hand outs and pay offs.