Daily Times

Reducing the Government’s footprint in wheat and other crop markets to encourage a market-based allocation of resources in the sector will help productivity growth in agriculture. Also, a reduced government footprint in wheat markets will induce more farmers to diversify into other crops that are becoming increasingly relevant in the consumption basket of Pakistani households, a World Bank Report titled “From swimming in sand to high and sustainable growth in Pakistan” said.

The report recommended the Government of Pakistan to maintain a security stock comprising a fraction of national consumption, as it is done in other countries in the region, such as Bangladesh. It added that food security was a valid policy priority that does not require the current procurement system that is in place for wheat.

In addition to the security stock, a strategic reserves management system should be in place, and equipped with modern bulk storage infrastructure, early warning systems, market information, a food security fund and policy lexibility to ensure trade policies facilitate the smoothing of reserves in case of need through importing or exporting.

Provincial agriculture departments could support alternatives for wheat planting areas that show very low productivity, to support farmers in moving into alternative crops, such as oilseeds, pulses and fodder, or fruits and vegetables when closer to markets.

In Sindh, for example, the share of household expenditure on high value food products is increasing, while there has been a decrease in the consumption of cereals and other crops (including sugar) over the past two decades.

However, the agri-food system has not responded to these changing consumption patterns and the demand for pulses, rapeseed, mustard and other water-thrifty, high-value crops are being supplied through imports, despite the suitability of local agro-climatic conditions, and the shorter durations and lower water requirements.