Rising food prices

According to a Recorder report, meat prices have risen sharply during the last few days, pushing it out of reach of ordinary households. Chicken price has gone up from Rs 165 to Rs 210 per kg, and mutton, already selling at an exorbitant rate of 470, is now available for Rs 510.
Beef, selling for Rs 250 to Rs 275, also is no longer an affordable alternative for low-income groups. Poultry farmers attribute the price jump to seasonal (wedding season) demand, as well as higher electricity bills and feed. But the mutton and beef prices are clearly linked to lack of control.
Our report quotes chairman of Lahore's famous Bakra Mandi (goat market) as saying that 7,000 to 8,000 goats are exported, on a daily basis, to Iran, and the Gulf States. Little wonder that meat prices in the local market have spiked, and consumption, according to market sources, has dropped by about 40 percent, exacerbating the malnutrition problem.
In fact, all essential food prices have been constantly rising. As per the Federal Bureau of Statistics, during July to January 2010-11, the Consumer Price Index (CPI), Sensitive Price Index (SPI) and Wholesale Price Index (WPI) increased over the same period in 2009-10 by 14.55%, 19.20%, and 22.37%. More to the point, essential food items registered significant price hikes. Moong and mash and gram pulses prices rose to 110.77%, 47.12% and 36.72%.
Onions sold 83.38% higher and tomatoes 73.02%, while vegetable prices hikes averaged 40.98%, sugar 46.35%, and vegetable ghee 20.59%. This rise in price indices has pushed more and more people below the poverty line. The bulk of their earnings go into buying food for survival. Malnutrition is on the rise, so are healthcare problems.
There is an obvious need for the government to take necessary measures to help the most vulnerable sections of society. First of all, the food situation should be monitored on a constant basis to undertake timely remedies. That is necessary to avoid the mistakes of the past, like when the previous government allowed wheat export only to discover shortly afterwards a severe shortage of the commodity at home.
Likewise, in the present instance, it makes little sense to allow export of goats and cattle at the expense of domestic consumers. Secondly, the poor should be given targeted subsidies on food items. Thirdly, the Competition Commission must keep a strict watch and take notice of suspected wrongdoing - like it did just a few days ago of edible oil prices - to ensure no sector acts like a cartel to raise prices in an arbitrary fashion. And of course, intensive efforts are needed to develop the agriculture sector, increasing productivity and price stability.