Former President of the Islamabad Chamber of Commerce and Industry (ICCI), Dr Shahid Rasheed Butt, said on Sunday that the country is facing a severe wheat crisis due to unnecessary imports followed by a good crop. He said that federal and provincial governments need to buy wheat, providing an opportunity for hoarders to purchase wheat at dirt-cheap rates, which is bankrupting the farming communities.

Shahid Rasheed Butt said in a statement issued here today that it is expected that farmers will cultivate sugarcane rather than wheat the following year if they are not bailed out, which will result in a severe crisis. He claimed that unnecessary imports and a bumper crop had created a massive surplus, so prices are steadily declining, and farmers are facing bankruptcy.

Next year, a decline in wheat production could trigger a new crisis if the farmers do not receive financial assistance. He observed that the intermediaries are reaping the benefits instead of passing on the benefit of falling wheat prices to the public. The business leader stated that if central or provincial governments do not address farmers’ issues, they will grow sugarcane or other crops instead of wheat next year. Due to surplus production, the government will have to subsidise the sugar mills, which are among the country’s most influential business groups.

He said that investigating why the caretaker government permitted the import of more than 3.5 million tonnes of wheat is also necessary, as the importers are now in competition with the farmers, which the hoarders are exploiting.

Our bureaucracy cannot accurately estimate the country’s wheat production and import requirements, resulting in wheat scarcity and surplus periods.

Dr Shahid Rashid Butt suggested exporting the excess wheat to Afghanistan and Iran if the government is unable to purchase it from the farmers.

Sugar exports have yet to be allowed, but sugar has become expensive. If sugar exports are permitted, their price will increase.

The government should take a firm stand on exports to stabilise sugar prices.