New Delhi: The Farmers’ Union in Pakistan, also known as the Kissan Ittehad, has announced a nationwide Farmers Protest on May 10. According to the Chairman of the Union, the farmers will be holding a nation-wide demonstration to express their deep anguish against the ‘wheat mafia’ in the country. It is scheduled to begin from the streets of Multan. This is not the first such protest that is being witnessed in the country that is already grappling from an economic crisis. Last week, such protests by farmers had taken place in Lahore. The allegation was the same. But neither the caretaker government of 2023, nor the present ruling dispensation, has any substantial answers.

The Chairman of Kissan Ittehad, Khalid Khokhar in a press conference held on May 6, reiterated the need for these demonstrations stating that this step is being taken because the concerns of the Farmers’ Union went unheard earlier. He has also assured that the protest is going to be a peaceful one.

It may be noted that the government of Pakistan had taken a strict stance against such demonstrations by launching a crackdown against the farmers who had taken to the streets in April; some arrests have also been made in this regard.

The wheat rates in Pakistan have taken a deathly blow and have reached shocking below the support price of PKR which is fixed at 3,900 per 40 kg. According to the Farmers Union, the sole reason behind this wheat crisis is a scam that unfolded while Pakistan was being ruled by a caretaker regime.

2023: During the regime of the caretaker government, officials allowed private business entities to import wheat instead of relying on local farmers and their domestic produce. This resulted in unprecedented loss to the domestic market whereas some private entities made all the money. The problem was compounded as Pakistan went on importing the commodity at a cost which put a major dent in the national exchequer of Pakistan and the country’s foreign exchange reserves. All this at a time when Pakistan was struggling with a historic economic crisis.

The Farmer’s Union also alleges that caretaker government then had doled out hard-earned $1.05 billion in foreign exchange during the crisis situation for the import of wheat.

This is being touted by the Opposition as the biggest wheat scam that the country has ever witnessed. They have even alleged that the (then) government kept on importing wheat, while the country’s foreign exchange was depleting. The question is why? The decision to allow private sectors to import wheat also gave undue advantage to the middlemen and corporations who went on with their exploitation.

These questions haven’t yet been answered by the government.

Farmers in the country are unhappy due to several reasons.

First, they had witnessed a bumper wheat crop production in 2024 and were in a good position to meet domestic as well as international demands. However, the caretaker government went on importing the produce without giving priority to the local production of wheat.

Second, the Opposition has also made an allegation that the wheat that was imported by the caretaker government was of inferior quality and thus did not satisfy the country’s food standards.

Third, it was also alleged that middlemen and their corporations made hay with this surplus wheat in the country. They also imported the products at an extremely cheaper rate and sold them at high prices gaining significant profit while the farmers slipped into oblivion.

The government fixed the minimum support price of PKR 3,900 per 40 kg, but with the shortage of demand the farmers are now forced to sell out their produce at around PKR 2,800-3,000 per 40 kg.

How has the government reacted to these allegations? While ex PM Kakar has declared that no new law on the import of wheat was introduced during his tenure and that his government was only trying to “encourage the private” sector to import the staple crop; the ruling regime is hesitant to investigate the matter further.

With the farmers taking to the streets on May 10, it remains to be seen how this wheat import crisis is going to unfold in the nation and what impact it is going to have on the economic condition of the country.

QOSHE - Newsplained: Wheat import scam taking Pakistan by a storm and why federal govt is reluctant to investigate - Deebashree Mohanty
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Newsplained: Wheat import scam taking Pakistan by a storm and why federal govt is reluctant to investigate

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06.05.2024

New Delhi: The Farmers’ Union in Pakistan, also known as the Kissan Ittehad, has announced a nationwide Farmers Protest on May 10. According to the Chairman of the Union, the farmers will be holding a nation-wide demonstration to express their deep anguish against the ‘wheat mafia’ in the country. It is scheduled to begin from the streets of Multan. This is not the first such protest that is being witnessed in the country that is already grappling from an economic crisis. Last week, such protests by farmers had taken place in Lahore. The allegation was the same. But neither the caretaker government of 2023, nor the present ruling dispensation, has any substantial answers.

The Chairman of Kissan Ittehad, Khalid Khokhar in a press conference held on May 6, reiterated the need for these demonstrations stating that this step is being taken because the concerns of the Farmers’ Union went unheard earlier. He has also assured that the protest is going to be a peaceful one.

It may be noted that the government of Pakistan had taken a strict stance against........

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