Ideally, there should be no government interference in a crop\u2019s price mechanism. But when there is no government system to shield farmer\u2019s interests, hoarders and cartels get free rein to exploit them. This is what happened last year when the Punjab government neither bought wheat from farmers nor announced a support price. It broke the farmers\u2019 backs and financial health.
\nNow, the federal government has decided to stop announcing a minimum support price for wheat. This move is part of an agreement with the International Monetary Fund. Officials say there is enough wheat for the year and no imports will be needed. They also claim there are no restrictions on wheat movement, and private storage will be made available through banks.
\nFor years, government intervention with hefty support prices aimed to protect both consumers and farmers. Most of the time it kept wheat prices lower than global rates and provided farmers with price stability. Without this system, market forces will decide wheat prices, which could lead to sudden fluctuations. There are more chances of exploitation of farmers.
\nConcerns are growing over the next wheat season. Climate change, heatwaves and low rainfall may reduce yield. Experts warn of a possible shortage if no action is taken. A parliamentary panel has asked the government to draft a 20-year plan for food security.
\nRice productivity, however, shows promising landscape as officials have reported an increase in per-acre yield and introduced new high-yield rice varieties for export. However, sugarcane production remains a concern. Despite heavy investments, yields have barely improved. Some sugarcane varieties once produced 2,600 maunds per acre, but now some regions report only 1,500 maunds.
\nAs this is the first time market forces have been given free hand to decide about rates, the shift may cause instability. Farmers\u2019 worries about being left at the mercy of market forces are not unfounded. Why not adopting a balanced approach \u2013 one that ensures fair prices while preventing manipulation by big traders.<\/p>\n","protected":false},"excerpt":{"rendered":"
Ideally, there should be no government interference in a crop\u2019s price mechanism. But when there is no government system to shield farmer\u2019s interests, hoarders and cartels get free rein to exploit them. This is what happened last year when the Punjab government neither bought wheat from farmers nor announced a support price. It broke the […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":{"0":"post-460562","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-editorial"},"yoast_head":"\n