Wheat production in Sindh missed its target by 100,000 tonnes. The procurement target was missed by 0.5 million tonnes in 2022-23. As the Sindh food department was supposed to procure 1.4m tonnes of wheat, the Sindh government imported 0.5m tonnes of grain to maintain consumer reserves for food security. It announced it would approach the federal government to import wheat.

The provincial agriculture department’s figures showed this year’s production at 3.9m tones against a target of 4m ton, but acreage has increased. The department believed increased acreage is due to impressive support prices and subsidies for rain-hit farmers. Against the wheat sowing target of 2.8m acres, wheat cultivation stood at around 2.9m acres, according to figures.

After the 2022 floods, the Sindh government raised the support price for 2022-23 considerably, increasing it from Rs2,200 in 2021-22 to Rs4,000 in 2022-23 to encourage flood-hit farmers to grow more wheat. In view of massive losses to Kharif crops caused by floods, the government paid a subsidy of Rs5,000 acre to small- and medium-sized farmers with landholdings of 0-12 acres and 12-25 acres, thus increasing acreage.

The Rs5,000 per acre subsidy is still being disbursed. The agriculture department had anticipated that since the riverine area was inundated completely in 2022 due to the Indus River floods, an impressive wheat harvest would be a foregone conclusion. Wheat is grown mainly in the katcha areas.

Farmers did not benefit from the enhanced support price for wheat, nor did consumers have the luxury of buying inexpensive flour

If the Sindh agriculture department’s figures are to be believed, increased acreage appeared to be a positive sign. Farmers also increasingly opt for mustard crops to avoid getting wheat support prices from food officials. The procedure remains cumbersome for them, and many fail to get the intended subsidy/support price due to arrogant officials’ indifference and corrupt practices.

Prof Dr Iqrar A Khan, Vice Chancellor University of Agriculture Faisalabad, believed that higher moisture and mild temperature remained helpful in increased production. “But higher moisture also leads to storage losses,” he said. Sustainable wheat production is a must, and there is a dire need to have surplus wheat for growth.

He stated that seed replacement is a norm in the developed world to have more yields, whereas this replacement comes after a five to 10 years cycle in our country; therefore, wheat seed lacks purity and vitality. Likewise, drill sowing is less than 10 per cent when compared with broadcast seeding, which is wastage.

“In Punjab, the area under wheat is reduced by a million acre as this acreage was replaced by canola,” he said. He pointed out that grain imports are not a positive sign. He asserted that a mere support price announcement was not sufficient. “Outdated harvesters lead to 15pc wastage, and that’s why technological replacement is considered mandatory if enhanced productivity is anything to go by,” he said.

Despite the increased production numbers in Sindh, required procurement still eluded the food department. The food department fixed a procurement target of 1.4m tonnes, the fourth year in a row, but only 0.9m tonnes of wheat could be procured.

It is despite the fact that this year procurement, for the first time, had started in March, unlike the past practices of late April or early May. While the market was in the hands of market players, consumers continued to buy expensive flour as prices of 100kg wheat bags jacked up.

Consumers are buying flour for a retail price of Rs160 per kilo as the open market price of wheat per 100kg bag was Rs12,600 or so. Neither farmers got the benefit of enhanced support price nor did consumers have the luxury of buying inexpensive flour.

This warrants an audit of the food department’s work by the government because this full-fledged food ministry deals only with one crop for 365 days, yet it comes up with disappointing figures amidst financial embezzlement at times.

The department is supposed to procure only a certain quantum of the total wheat crop, store and then release it to roller flour mills and chakki owners in the October-November period. But it is something that is never done efficiently.

In view of inadequate procurement, the Sindh cabinet decided to import 0.5m tonnes of wheat through the private sector or approach the federal government to import this quantum to maintain the required stocks to ensure the flour supply to consumers. This is to contribute to increased food import bills at a time when finance wizards seek to stabilise the economy.

Given the Russia-Ukraine war, wheat import prospects could be undermined because Russia pulled out of its Black Grain Initiative, brokered by the United Nations and Turkey last July, for the export of wheat from Ukraine. “We often rely considerably on Ukraine’s imported wheat — around 45pc — to meet wheat’s needs because it is cheap. Recent development doesn’t augur well for us,” said Pakistan Agriculture Council former chairman Dr Yusuf Zafar.

Even a slight increase in yield of two to three maunds per acre could increase grain production. Given the climate change scenario triggering extreme weather events, enhanced per-acre yields are essential to ensure food security.

The drainage problem in Sindh made matters worse for farmers last year as wheat sowing was delayed considerably. Belated sowing translates into lower productivity. In the absence of an efficient drainage system, lands remain inundated for long periods, even after the monsoon season is over.

Sindh Abadgar Board (SAB) leader Mehmood Nawaz Shah wondered why the food department always fails in procurement. “What ails the food department in not procuring the desired quantum? Will someone at the highest forum in government look into it?” he questioned.

For its part, the Sindh cabinet, for inexplicable reasons, has avoided looking into reasons that led to the food department’s failure to have required procurement. Procurement continues to be marred by irregularities.

Published in Dawn, The Business and Finance Weekly, July 24th, 2023