Pakistan wheat crisis: What are the key causes?

 

Pakistanis are hankering after flour. The food crisis has a variety of causes. 

What is the reason for the sudden increase in prices?

Pakistan is dependent on imports for flour, much of which comes from russia and Ukraine. In 2020, pakistan imported wheat worth $1.01 billion. pakistan bought flour worth $496 million from ukraine, and after that, it was purchased from russia for $394 million. According to data from the Observatory of Economic Complexity (OEC), Pakistan's dependence on ukraine was high. This year, due to the war between russia and ukraine, the supply was disrupted.

There was a severe flood in pakistan in 2022, due to which the crops were badly affected. The wheat crop in water-logged pakistan was ruined. pakistan also has a shortage of grain storage.

Wheat prices have increased massively in Sindh and Balochistan. Grain storage was badly affected due to the floods. The smuggling of wheat in afghanistan is also one of the reasons for Pakistan's tragedy. There is a shortage of wheat locally and prices are sky-high. The government of pakistan says that there is sufficient stock of wheat in government godowns. Due to the delay in distribution, there has been a shortage of flour, which pakistan is trying to rectify.

Pakistan's distribution system also has flaws

Wheat is given to the mills on behalf of the provincial governments in Pakistan. The mills then make the flour available in the retail markets. The provinces, which feel that there may be a shortage, can request the Center for more stock. On the other hand, small mills in rural areas buy flour directly from the farmers. This time Pakistan's crops were destroyed, and there was not enough import, due to which inflation hit the general public. Pakistan's government says that enough wheat has been bought from russia, and soon the shortage will end.

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