In order to control the possible crisis of flour the government has imposed a ban on the export of Flour that is grinded by the wheat imported from abroad, to ensure the supply to citizens in local markets. It may be remembered that four days ago more than 1,800 flour mills across the country stopped operations in protest against the withholding tax measures but the flour mills have reopened after the strike was postponed. The flour mills were on strike against the implementation of withholding tax by FBR and the mills were closed for 3 days.
It should be noted that the negotiations between the Pakistan Flour Mills association and the government were successful yesterday after which the Flour Mills Association has announced to postpone the strike for 10 days. In that regard flour mill owners says that imposition of withholding tax will increase their burden as they will have to act as FBR tax agents and collect advance tax from non-filers retailers. An additional tax was also imposed on flour mills which has increased the prices of flour.
The government’s measures at a time of economic uncertainty have brought food security into question as shortages in Flour supply could have far-reaching consequences for the common man, who are already desperate and tax-burdened. If the import of flour continues under these conditions there may be a crisis of flour in the whole country including Khyber Pakhtunkhwa.
Therefore the government seems to be very diligent and has already banned the export of flour. So that Flour cannot be exported that is grinded from the imported wheat.
In fact the main reason for Flour and other commodities is that the government does not pay attention to supply and demand in the country, due to which investors first earn through importing wheat, then by the grinded Flour that exports to other countries.
Now the government has Ban that export which is a good move. According to experts in a free market economy it is the forces of supply and demand that determine the price of a commodity in the local market.
The policy of minimum support price of wheat for several decades has ensured that it benefits only the mill owners, middlemen and the big bureaucracy that is involved in the agriculture of wheat but not benefiting timely delivery of commodity to the common people.
There are difficulties in proper supply and delivery to the people. This policy has also led to a lack of innovation in the agriculture industry as farmers and landowners do not invest in new technology or improved seeds as there is no guarantee of their income after the harvesting of wheat crop.
To ensure competition in the sector and benefit consumers, such policies needs to be scrapped as excess supply will lead to lower prices in the local market. If it has been done then instead of being limited only to exports abroad, attention should be paid to the local markets so that no one can store the imported wheat flour without fear of penalties. Along with that government also needs to improve the reporting mechanism in the provincial agriculture departments and the federal food ministry to ensure food safety at all times. Better policy making is the need of the hour as a knee-jerk reaction will not benefit the common man or the country in the long run.
Therefore the government should on board all those stakeholders who are responsible for the delivery of flour in the country and take such far-reaching measures to get hold of the big crocodiles in the market, who have been making billions of rupees in every season from that filthy business that is continues from decades. So it is hoped that the higher authorities will ensure timely supply of flour to the citizens.
